Smartphones may become a luxury: in 2026, the price of technology may increase, and the range may decrease

The latest report by the analytical agency Counterpoint Research reveals alarming trends in the mobile technology market. Rising prices for random-access memory (DRAM) could lead to a 25% increase in smartphone production costs, in turn affecting consumers’ budgets. Experts warn of an expected price increase and a decline in device technical specifications, as manufacturers will be forced to reduce costs to remain competitive.

Impact on budgets: which consumers will suffer the most

The leading cause of the crisis is a significant shortage of RAM. Analysts believe that budget smartphone models priced at $ 200 or less will suffer the most in this situation. Since the beginning of the year, the cost of such gadgets has increased by 20-30%.

As for mid-range models, growth is approximately 15%, while for expensive flagships it reaches 10%. Thus, the time of cheap but powerful smartphones is coming to an end. In addition, global shipments of gadgets are forecast to decline by almost 3% in 2026.

Challenges for Chinese manufacturers: how big brands will withstand the pressure

The market is expected to undergo a severe test. The most difficult will be for Chinese companies, which usually operate at the edge of minimum profitability and have limited financial reserves. Rising component prices could be a devastating blow for them.

At the same time, big brands such as Apple and Samsung are in a more advantageous position. Thanks to stable supply chains and high margins, these companies will be able to offset some of the cost increases without sharp price increases for consumers.

Technical compromises: what to expect from new smartphones

To avoid scaring off buyers with high prices, manufacturers will be forced to resort to unfriendly measures. Companies are expected to start making significant savings on the internal components of new gadgets:

Reducing memory sizes: instead of the usual sizes, they may return to smaller modules.
Simplifying features: simpler screens and cameras will be used.
Repurposing old components: reusing parts from previous generations in new models.
While these measures may reduce costs to some extent, they are unlikely to offset the impact of more expensive memory fully. Therefore, 2026 is likely to be a year of compromise between price and quality, where consumers will be forced to pay more for less functionality.