New smartphones are becoming more expensive, and the number of affordable models on the market is decreasing. Due to the rapid growth in demand for memory chips from the AI industry, phone manufacturers are forced to raise prices and abandon some budget devices. Analysts warn that the situation is unlikely to improve before 2028.
New smartphones are becoming more expensive, and the number of affordable models on the market is decreasing. Due to the rapid growth in demand for memory chips from the AI industry, phone manufacturers are forced to raise prices and abandon some budget devices. Analysts warn that the situation is unlikely to improve before 2028.
This is reported by The Register, citing data from analytical companies IDC and Omdia .
According to IDC, manufacturers shipped 255.3 million smartphones in July-September, down 22% from a year earlier. Omdia estimates the decline at 20%.
According to IDC, the cost of memory has increased by about 350% in the past year alone. While the rate of price increases is gradually slowing, manufacturers are also having to spend more on other components. To save money, some companies are already switching to cheaper screens, camera sensors, and radio frequency modules.
Samsung and Apple have strengthened their positions amid the crisis. Together, they account for about 45% of global smartphone shipments, up 8 percentage points from a year ago.
Omdia predicts that global smartphone shipments will decline by 12% in 2026 and another 6% in 2027. Even the release of new flagship models and holiday sales are unlikely to reverse the trend.
Previously, dev.ua wrote that due to the AI boom, the global market could lose more than 230 million budget smartphones every year.
