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Smartphone market shifts as AI chip demand drives up global prices
The global smartphone market is undergoing a significant shift as the surge in AI demand drives up the cost of memory chips. This shortage has led to a rise in device prices, with existing models increasing by an average of 15% and new releases costing approximately 25% more than the previous year.
As production costs climb, manufacturers—particularly Chinese brands like Xiaomi, Oppo, and Vivo—are reducing their focus on the budget segment (under $150-$200) to prioritize high-margin premium devices. This trend is contributing to a potential digital divide, as rising costs may hinder internet access for millions of people. Regional price hikes vary, with India seeing a 21% increase and the Asia-Pacific region seeing a 19% increase, while the US has seen a more modest 5% rise.
To remain competitive, mid-range smartphone manufacturers are increasingly incorporating flagship-level features, such as silicon-carbon batteries and advanced AI capabilities, to bridge the narrowing gap between mid-tier and high-end devices. Global smartphone production is projected to fall by 13.9% in 2026, reaching its lowest level in over a decade.
Entities
Counterpoint · Oppo · Samsung · Vivo · Xiaomi
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] New smartphone models launched are about 25% more expensive than last year. thuonggiaonline.vn · cafef.vn
- [○ 1 SOURCE] The number of smartphones under $100 decreased by nearly 60% in Q2 2026 compared to the same period last year. thuonggiaonline.vn
- [○ 1 SOURCE] High-end smartphones (wholesale price from $600) accounted for a record 29% of global sales in the first half of 2026. thanhnien.vn
- [○ 1 SOURCE] LPDDR4/5 memory chip prices in Q2 2026 increased approximately twofold compared to Q4 2025. thanhnien.vn
- [DISPUTED] Global smartphone production in 2026 is forecast to decrease by 13.9% to approximately 1.08 billion units. thanhnien.vn
- [● 2 SOURCES] Smartphone prices currently in circulation globally have increased by an average of about 15%. thuonggiaonline.vn · cafef.vn
- [● 2 SOURCES] Smartphone prices increased by 21% in India, 19% in Asia-Pacific, and 18% in the Middle East and Africa. thuonggiaonline.vn · cafef.vn
- [○ 1 SOURCE] The price gap between mid-range Android phones and flagships is narrowing quickly. thanhnien.vn