Home / Technology / AI Gobbles Phone Memory, Prices Surge
AI Gobbles Phone Memory, Prices Surge
13 Oct
Summary
- Global smartphone shipments dropped 20% in Q3 2026.
- AI infrastructure buildup significantly increased memory chip costs.
- Manufacturers raised smartphone prices by 20% overall this year.
Global smartphone shipments experienced a significant 20% slump in the third quarter of 2026, reaching their lowest point since 2012. This downturn is largely due to the ongoing memory crisis, specifically the shortage of DRAM and NAND chips. The relentless expansion of AI infrastructure has dramatically increased demand for these essential components, driving up their costs.
Manufacturers have responded by raising smartphone prices, which have seen an overall increase of 20% during 2026. This challenging market has impacted even major players like Samsung and Apple, who, despite market share gains for Samsung and Apple surpassing 20% in Q3, both saw year-over-year declines in shipments.
Consumers are reacting cautiously to these price hikes, with many delaying purchases. Surveys indicate that half of respondents, including 56% of Gen Z, plan to wait for holiday sales. The rising costs and the focus on premium devices by manufacturers suggest that budget-friendly options may become scarcer, and phone prices are unlikely to decrease soon.
