The surge in AI data center construction is causing a global memory chip shortage, which is driving up smartphone costs and eliminating the cheapest devices from the market. This shift threatens to widen the digital divide for low-income consumers.
Samsung has raised prices for its Galaxy S26 flagship series and Galaxy A budget lineup in the US, driven by a global memory shortage. While the S26 Ultra now costs $1,400, Walmart is selling it for under $1,000. The Galaxy A17 5G has increased by $70 since launch, and Google’s Pixel 10a is now $100 more expensive. Analysts suggest these hikes may persist until 2030 due to ongoing RAM supply issues.
Smartphone prices have risen significantly in 2026 due to a global memory chip shortage driven by AI data center demand, a phenomenon dubbed 'RAMageddon.' While flagship devices from Apple, Samsung, and Google have increased in cost, budget segments remain relatively stable. The iPhone 18 Pro and Pro Max have launched, with the first foldable iPhone, the Duo, arriving in October. Experts recommend trading in older devices or using carrier promotions to offset higher costs, while budget buyers can still find capable options under $500 or £600.
Prices for the upcoming iPhone 17 and iPhone 17 Pro are estimated ahead of Apple's event next week, with details likely to be confirmed during the launch.
Google's Pixel 10 series will be released in Q4 with high prices in Europe, ranging from €899 for the base model to €2,289 for the Pixel 10 Pro Fold, despite no price hike compared to last year. The lineup includes new features like the Tensor G5 chip, but the high costs may lead consumers to wait for sales or consider older models with discounts.
Samsung's upcoming Galaxy S24 range, including the Galaxy S24, S24+, and S24 Ultra, is expected to have prices similar to the previous Galaxy S23 family, starting at $799 for the base model. The use of Samsung's own Exynos chipset alongside Qualcomm's Snapdragon 8 Gen 3 is expected to help keep costs down for the Galaxy S24 and S24+. However, the premium Galaxy S24 Ultra, which is expected to be 100 percent Snapdragon, may not benefit from the cost-saving. The memory options for the Galaxy S24 Ultra are reported to be 8 GB or 12 GB, which may be seen as a drawback compared to competing smartphones with more memory. The Galaxy S24 family is set to launch in early 2024.