The prices of personal computers (PCs) and smartphones are predicted to face their largest increase in 26 years in 2026. This surge is mainly driven by soaring memory chip costs caused by high demand from artificial intelligence (AI) server deployments.
Industry insider “Lanzuk” revealed these insights on a Naver blog, citing TrendForce research. He explained that escalating RAM prices are due to depleted supplies needed for AI systems requiring large memory capacities. Alongside RAM, costs for SSDs and flagship smartphones are also expected to climb significantly.
Market watchers warn that this trend is likely to continue into 2027, creating an extended period of price pressure affecting both consumers and manufacturers. Although exact percentages from this initial analysis remain unclear, established analyst firm International Data Corporation (IDC) offers a measured forecast.
IDC’s Outlook on Price Increases
IDC estimates that the average selling price of smartphones in 2026 may rise between 3% and 5% in a moderate scenario. However, if conditions worsen, prices could jump by 6% to 8%. This increase threatens to shrink global smartphone market growth by 2.9% or possibly as much as 5.2% in the worst case.
Key highlights from IDC’s analysis include:
- Entry-level and mid-range smartphone vendors, such as Transsion, Realme, Xiaomi, Oppo, Vivo, Honor, Lenovo (Motorola), Huawei, and TCL, will face the greatest challenges.
- These manufacturers typically operate with thin profit margins, leaving limited room to absorb component cost hikes.
- Consequently, many are expected to increase smartphone prices, risking their competitive advantage in an already saturated market.
Flagship brands like Apple and Samsung are predicted to be more resilient. Their strong cash reserves and long-term component supply contracts secure memory availability for one to two years. IDC expects these premium brands to manage costs by postponing RAM capacity upgrades and maintaining 12 GB RAM configurations in 2026 flagship models.
Impacts Beyond Smartphones: PCs and Components
The price hikes also extend to PCs. IDC forecasts a 4% to 6% average selling price increase for PCs, with possible escalation up to 8%. This rise affects all segments, including consumer laptops, gaming desktops, and professional workstations. For gamers and content creators, higher budgets will be required to maintain performance levels.
Increased demand for premium PC displays, such as the 65% sales jump in OLED monitors, further underscores the growing cost pressures within hardware.
The root cause lies within the global semiconductor sector. Burgeoning demand for high-bandwidth memory (HBM) and other chips supporting AI workloads—especially large language models and generative AI in data centers—is disrupting production capacity. This competition causes DRAM and NAND flash prices to inflate.
As a result, component cost increases flow downstream, compelling device manufacturers to pass some or all expenses on to end consumers. This demonstrates how the AI revolution, although primarily software-focused, has significant financial impacts on hardware industries.
Preparing for a New Market Reality
Building new semiconductor fabrication plants typically takes years, so immediate supply increases are unlikely. Consumers and businesses worldwide should anticipate higher prices for everyday computing and communication devices in the near future.
This anticipated 26-year peak in price hikes signals a major shift in the technology market landscape. Stakeholders must adapt to maintain competitiveness and affordability amid ongoing supply chain and demand challenges.
Overall, the coming years mark a critical juncture where AI-driven demand reshapes costs across the electronics sector, affecting devices from smartphones to high-end PCs.
