Smartphones Getting Pricier: What's Happening in 2026?

In 2026, the smartphone market is facing a tough time. Why? Because making smartphones is getting more expensive. This isn't just a small issue. It's a big problem that will affect all smartphone brands. The main reason is the cost of parts. Chips and memory, which are essential for smartphones, are becoming more expensive. This is partly because of the growing demand for AI. As a result, the cost of making low-end smartphones has already gone up by 20-30% this year. And it's not stopping there. Memory prices might rise by another 40% by the second quarter of 2026. This means that the total cost of making a new smartphone could increase by 8% to over 15%. So, smartphones will become more expensive. The average selling price is expected to go up by 6. 9% next year.Some brands will handle this better than others. Apple and Samsung are in a good position. They can probably pass on the extra costs to consumers. But other brands, like Xiaomi, Honor, and Oppo, might struggle. They don't have as much room to increase prices. So, they might see bigger declines in sales. For example, Apple and Samsung might see a decline in sales of around 2%. But Honor could see a decline of over 3%. Vivo and Oppo, which were expected to grow in 2026, are now expected to see declines too. This is a big change from previous expectations. It shows how the smartphone market is changing. It's not just about who makes the best phone anymore. It's also about who can handle the rising costs.