Phones Might Get Pricier Next Year, And You Can Thank AI
Planning a tech upgrade? Do it soon. Prices for phones and tablets are set to rise in 2026 as the AI boom causes a global shortage of memory chips. Analysts and major brands like Xiaomi warn that the cost of your next device is going up.
Planning to upgrade your phone, tablet, or smartwatch in 2026? You might want to buy sooner rather than later. Industry analysts are warning that prices for consumer electronics are set to climb due to a dramatic shortage of memory chips, a direct consequence of the artificial intelligence boom.
As tech giants race to build massive AI data centers, memory manufacturers are diverting production capacity to the highly profitable, specialized memory needed for AI servers. This leaves fewer chips for everyday devices, driving up costs. Counterpoint Research, for instance, projects that memory prices could surge by an additional 20% early next year, impacting manufacturers’ ability to keep retail prices stable.
The pressure is already being felt by electronics brands. Xiaomi President Lu Weibing recently warned that chip cost increases have "far exceeded expectations" and urged buyers to brace for "a sizeable rise in product retail prices." Further signaling the shift, memory giant Micron announced it is exiting the consumer memory market entirely to focus on "AI-driven growth."
The next generation of gadgets will likely pack a higher price tag as companies struggle to absorb these unprecedented component costs.
