The upcoming year could bring a noticeable increase in smartphone prices, warned Xiaomi President Lu Weibing during an earnings call on November 18, 2025. As factors such as soaring memory chip costs and rising expenses in the semiconductor industry continue to impact the market, consumers may need to prepare for higher retail prices in 2026.
Industry-wide Price Pressure
- Samsung Galaxy devices might see price increases in 2026
- Rising component costs driving up Galaxy S26 smartphone prices
- TSMC's chip price hikes to have a ripple effect on phone costs
- Recent 60% surge in RAM prices contributing to overall cost inflation
While there is speculation that Samsung's Galaxy S26 range could avoid significant price changes, nothing is certain until an official announcement. Meanwhile, Xiaomi's leadership underscores the likelihood of wider industry price adjustments, largely due to persistent high costs of memory chips.
According to reports, the demand surge from AI development and data center expansions has contributed to the elevated memory chip prices, a trend expected to continue into 2026.
"I expect pressure to be much heavier next year than this year. Overall, consumers are likely to see a sizable rise in product retail prices. Some of the pressure may have to be addressed through price hikes, but price increases alone won't be enough to digest it."
Consumer Opinions on Price Increases
Current poll results:
- Yes: 10%
- Only if $30-$50: 40%
- No: 50%
Is This the Right Time to Upgrade?
If your current smartphone is showing signs of wear or performance issues, now might be the best moment to consider an upgrade. With Black Friday deals offering significant discounts across budget, mid-range, and flagship devices, waiting for 2026 could mean paying more.
However, if your phone is still performing well, you don’t need to rush. Next year’s upgrades might not bring transformative improvements for everyday use. For instance, the new iPhone 17 Pro showcases cutting-edge features but also has some reports of durability issues, making protective cases advisable.
