Chip shortage drives up smartphone prices - Analysis, technology will become more expensive this year
The benefits of artificial intelligence (AI) may come at a high cost to consumers. The growing demand for memory chips is driving up the price of smartphones and computers. According to analysis by the Institute for World Semiconductor Trade Statistics, prices for these chips rose by 50% last year. As a result, consumers may face not only longer delivery times but also higher prices for electronic and digital devices.
In the first half of 2025, the global semiconductor market reached $346 billion, an increase of 18.9% compared to the previous year. For 2026, an even greater growth of more than 25% is expected, bringing the market to $975 billion.
How much smartphone prices could rise has been examined in a study by market research firm IDC (International Data Corporation).
"In a moderate scenario, average selling prices of smartphones could increase by 3 to 5%," the study said. "In a pessimistic scenario, they could increase by up to 8%."
Experts warn of a tipping point. The era of cheap and abundant memory and storage is coming to an end. In 2026, the technology will become more expensive, not because demand is booming, but because supply can't keep up.
The use and cost of memory chips in smartphone manufacturing has increased significantly over the past five years. According to industry data, memory accounted for about 8% of the total component costs in a device like the iPhone 12 Pro Max in 2020.
By September 2025, this share had grown to approximately 10% in the iPhone 17 Pro Max. Due to the continued increase in memory chip prices, analysts at research firm Counterpoint Research estimate that this share could grow to as much as 20%.
In contrast to the sluggish demand for new devices, the used smartphone market is experiencing strong growth. According to one analysis, refurbished smartphones reached a market share of 9% in the EU in July 2025. In January last year, the figure had been just 5%.
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