The surge in artificial intelligence (AI) technology is having a direct impact on consumer wallets. The demand for memory chips to support AI data centers is putting pressure on RAM and storage supplies, consequently driving up smartphone prices.
Projected Smartphone Price Increases
According to the International Data Corporation (IDC), the average global smartphone price is expected to reach USD 581, or approximately IDR 9.6 million, by 2026. This marks a significant increase of 27.6% from the previous year.
Components Driving Costs Up
The primary culprit behind this price hike is the soaring cost of memory components. IDC reports that the prices of DRAM and NAND have surged by over 300% year-on-year. The growing demand for AI infrastructure is competing for memory production capacity, which is also critical for smartphones, laptops, and other electronic devices.
Market Impact on Smartphone Producers
The implications of this situation are becoming evident in the market. Reports indicate that the prices of several iPhone models in the UK have increased by as much as £100. Similarly, the Google Pixel 11 Pro XL is now priced £80 higher than its predecessor, despite having lower memory configurations.
Challenges for Budget Smartphone Manufacturers
Budget smartphone manufacturers are facing the toughest challenges. IDC notes that memory costs can now account for over 65% of the component expenses for lower-end devices. The organization predicts that global smartphone shipments will plummet by 16.7%, falling just above 1 billion units by 2026, marking the deepest annual decline recorded.
The segment of smartphones priced under USD 100 is among the hardest hit, with shipments dropping nearly 60% year-on-year in the second quarter of 2026. Many Android manufacturers are beginning to scale back on lower-end models and are shifting their focus towards higher-priced devices.
Consumer Consequences and Future Outlook
For consumers, the implications extend beyond potential price increases. Manufacturers may reduce the RAM and storage capacities of devices to keep prices manageable. IDC warns that smartphones that previously offered 12 GB of RAM and 256 GB of storage might soon be replaced by models with only 8 GB of RAM and 128 GB of storage at similar price points.
This pressure is not expected to ease soon. Reports from Reuters indicate that smaller smartphone and laptop manufacturers are even redesigning their products due to difficulties in securing memory supplies. For instance, Jolla is creating two motherboard designs to accommodate different chip configurations. Framework is leveraging modular RAM designs, while some manufacturers are forced to order components well in advance without knowing final prices or quantities.
Furthermore, the CEO of SK Hynix has warned that 2027 could be the worst year for supply capacity, with many industry players not anticipating a return to normal conditions until 2028.
Source: https://inet.detik.com/consumer/d-8674127/krisis-ram-menggila-gara-gara-ai-harga-hp-terancam-makin-mahal
