I'm not worried about the jump in smartphone prices, here...

I'm not worried about the jump in smartphone prices, here's why Several Motorola phones laid out on a desk

By Jon Gilbert Published 49 minutes ago Jon has been an author at Android Police since 2021. He primarily writes features and editorials covering the latest Android news, but occasionally reviews hardware and Android apps. His favorite Android device was the Pixel 2 XL, and he regards the three months when he owned an iPhone as a time of the utmost shame. Jon graduated with a History degree in 2018, but quickly realized his writing skills were better put to use writing about tech rather than essays. He started writing and editing for startups shortly after graduating, where he did everything from writing website copy to managing and editing for a group of writers. When he's not sitting at his computer, you can find him working at Warhammer World, reading sci-fi, or turning his speakers up to 11. Sign in to your Android Police account Summary Generate a summary of this story follow Follow followed Followed Like Like Thread Log in Here is a fact-based summary of the story contents: Try something different: Show me the facts Explain it like I’m 5 Give me a lighthearted recap

Gone are the days when the iPhone X broke headlines for its $1,000 retail price. Most flagship phones are closer to $1,000 than $500; the Pixel 10, one of the best value Android phones you can buy, retails for $800.

There are plenty of budget options available, and OnePlus has proven that it can undercut the price of its competitors while still providing a flagship-level experience. But regardless of what kind of phone you use, you can expect price hikes in the future.

We're no strangers to the rising costs of smartphones, but companies are generally clever at staggering the increases to avoid shocking customers.

However, we may see a sharper increase than we're used to in the near future, and the culprit is one we're all too familiar with.

Memory chip prices are soaring, but why?

A classic case of supply and demand

OnePlus 15 and Samsung Galaxy S25 Ultra held up against each other

In an earnings conference call on November 18, Xiaomi warned that the soaring costs of memory chips would drive up smartphone costs (via Reuters).

It wasn't just a warning to consumers; price hikes by manufacturers may not completely absorb the rising costs, causing all smartphone manufacturers to see profit reductions without other action.

It's a significant price hike. Samsung has reportedly hiked memory chip prices by up to 60%. Most of these are destined for data centers, but smartphones are major consumers of these chips. The cause? AI.

AI processing requires significant amounts of memory hardware, and as demand for building new AI-focused data centers spikes, memory chip makers are faced with a problem.

The rapid development of AI infrastructure has not yet stabilized. Talk of an "AI bubble" is everywhere, so memory makers are unlikely to increase production until they know that the bottom won't suddenly fall out of the market.

The impact of this increased demand can be felt everywhere, but it's in smartphones that we may see the most dramatic increase in prices, even for Samsung's phones.

We may see significant price hikes for smartphones

Manufacturers will struggle to absorb the cost of rising hardware prices

Samsung Galaxy S25 Ultra held against a Galaxy S24 Ultra

It's tempting to imagine that Samsung Galaxy phones won't see a price hike; after all, if Samsung is producing the chips, it's the other manufacturers purchasing these chips that will have to absorb the price increases.

However, due to the significant price increase, it's unlikely the company will be able to absorb the extra costs by passing them on to its customers.

It's not just memory chips either. Nearly all the internal components in your phone have dramatically increased in price over the last year, including camera modules.

Until supply catches up with demand, we'll see the same explosion in smartphone prices that occurred over the last decade.

When smartphone manufacturers raise prices on devices, the increase tends to fall around the $100 mark.

However, next year, this increase could be the bare minimum; you should expect higher increases. So what can you do?

How to prepare for the rise in smartphone prices

Replace your phone now, or better yet, don't

Google Pixel 10 Pro Fold held up against an original Pixel Fold

Manufacturers may adopt alternative strategies for coping with the increase in production costs.

Subscription fees for Android features, higher fees for photo storage, and cheaper parts are all possible ways manufacturers can absorb the costs.

But if the retail price of smartphones jumps in line with hardware costs, then here's how you can prepare.

In short, buy a new smartphone now. Or, if you've bought a new smartphone in the last two years, hold onto that one.

It's a happy coincidence that these price hikes are occurring at a time when our smartphones are capable of lasting longer than ever. For example, the Pixel 6 is still worth buying thanks to the Material 3 Expressive update.

And if you are holding onto a Pixel 10 or Galaxy S25, then you can safely ride out the next few years without needing a new phone.

I want to make this abundantly clear. You do not need to buy a new phone in 2026.

Smartphone hardware innovation has plateaued in recent years; look to software for the biggest advancements.

When Google renders its newest phones irrelevant by bringing its exclusive software features to older devices, I struggle to recommend buying a phone released in 2025.

Rising hardware costs won't affect you if you're careful

Whether you should replace your phone now, hang on to your old one, or even absorb the potential price increases depends entirely on your personal circumstances.

However, regardless of your situation, now is the time to take a good look at your smartphone. Chances are, it'll last you at least a few more years.

It's hard not to get panicked about price increases, regardless of what they're for. Yet the most economically viable solution is to hold onto your current phone for as long as possible.

If you need to replace it within the next year, consider an older device like the Pixel 7. You don't even have to rely on third-party sellers. For example, Google sells refurbished phones directly through its website; you can buy a like-new Pixel 7 for $360 with a one-year warranty.

Don't panic about price increases; there are plenty of ways to avoid them.

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