Smartphones have never been, well, smarter. But now as our technology needs increase and manufacturers roll out state-of-the-art features, the very technology we’re relying on is about to hit a crisis point.
And it’s all over the growth of AI and the fight for RAM.
For the past couple of years, AI has been the top feature smartphone brands have launched in their new devices, driven by the 2024 Samsung Galaxy S24 series where AI was touted as a groundbreaking technological addition to the device lineup. While phone prices didn’t jump up drastically to correspond with the AI inclusions, the specs for the phones didn’t exactly improve either.
But that was one big distinction phone brands were making — the hardware might not be making those big jumps in updates anymore, but the software of the phone certainly could.
This also led to improvements in the cheap and mid-range smartphone market as more advanced tech and features rolled out to cheaper devices, giving users higher quality at lower prices. This is a trend that Samsung is set to continue, as it rolls out its AI features to more devices in its budget-friendly A series range.
What is the RAM shortage and why does it matter?
While the prices of phones were once more in line with hardware quality — more and better cameras, bigger batteries, faster processors all packaged in durable and sleek materials — a smartphone’s memory is the feature that is set to raise device costs this year.
The RAM (Random-Access Memory) that processors in smartphones, computers and other devices use, is a type of electronic memory which temporarily stores data that you’re using in the moment, such as launching an app and browsing the internet. The faster the RAM in your device, and the more capacity it has, the quicker your device will be when multitasking and using a range of apps.
RAM is also essential in building the servers in the many data centres that big tech companies are using to operate AI. The rapid growth of AI in the past couple of years means that AI companies are buying up the supply of RAM and generating a high demand for this component, which is also raising prices.
While these AI data centres have different technology needs than consumer tech like smartphones, the growing demand for RAM means that the companies that produce these components are shifting their manufacturing focus, leaving consumer tech behind. For example, leading producer Micron Technology has made the decision to phase out its Crucial consumer-branded products (which included SSD and external storage products). The big investments and high demand from the AI boom makes it more lucrative for these manufacturers to step away from consumer tech needs and prioritise AI companies.
This has led to ‘RAMageddon’: a great RAM shortage and expected price rises in 2026, as consumer tech makers battle it out with the big AI companies for access to these critical components. Technology market research company Counterpoint recorded an increase of memory prices by 80%-90% in the first quarter of 2026. And it’s only expected to get worse over the next couple of years, with Intel’s CEO Lip-Bu Tan predicting no relief expected until 2028.
What does this mean for mobile phones?
The obvious implication is that the increase in price will be passed on to consumers, meaning new phones will cost more.
We may also see the specifications for RAM in devices going backwards as brands may have to compromise and roll out smaller RAM capacity. This takes smartphones a big step back, considering AI features now prominent in our smartphones require more RAM to run smoothly and quickly.
Technology industry analysis group TrendForce predicts that this will mostly impact the lower end of the smartphone market where base models will likely return to 4GB RAM, while mid-range devices will see 12GB RAM options gradually disappearing. High-end devices will be least impacted, however the rollout of 16GB RAM options will slow.
As the cost of RAM increases, it’s expected to especially impact the price of cheap phones, which are less profitable than premium devices. In order for manufacturers to make profit, they may be forced to raise prices or put more focus on their other ranges. There might also be additional impacts like delayed device launches and a decrease in global smartphone shipments.
However we won’t really know the impacts until brands start launching and selling their 2026 smartphone ranges.
Samsung’s delayed 2026 Galaxy S series launch might be a sign of the times, with the 2026 Galaxy Unpacked event scheduled for the last week of February — about a month later than past Galaxy Unpacked events. However, whether this year’s event has been delayed because of the RAM shortage (and a rumoured price increase) or not, is speculation at this point.
How to beat the phone price rise
While we’re still waiting to see what the real-world impacts are for the price of smartphones, if you have a tight budget and you need a new phone, you might prefer to take one of the following steps.
1. Buy a 2025 flagship now (or an older model)
If you’ve got the funds ready, upgrading to a 2025 or earlier device instead of waiting for this year’s models can help you avoid higher prices.
Keep in mind that if smartphone prices do rise, there might be more competition for older devices and stock could run out sooner.
2. Go for a cheaper model
You can also look at compromising on the device itself to save costs by going for a mid-range phone rather than a premium one, or going with the standard model in a device lineup compared to a ‘pro’ version.
Research conducted by Canstar as part of the Most Satisfied Customer award for Smartphones in 2026 (of which Samsung was the winner), found that in response to cost of living pressures, 24% of survey respondents chose to purchase the ‘base’ model rather than the ‘pro’ phone and 12% went for a cheaper phone than they had intended.
3. Consider refurbished phones
Alternatively, you could look at a refurbished or second-hand phone if you’re upgrading from a much older device. The flip side of this is that refurbished phone prices might also go up if there is an increased demand for older devices — but if you’re looking at selling an old phone, you could get more for your unwanted device.
What about other tech?
Smartphones aren’t the only consumer tech impacted by the RAM shortage. Other ‘smart’ devices, including computers, rely on RAM and we can expect that prices for these will also increase over the next couple of years.
This is especially set to impact the price of laptop and desktop computers. Those who build and upgrade their own PCs are already seeing big price increases in the individual RAM components, which have been growing since October 2025. However, this will also start impacting prices of pre-built computers.
Lenovo (which also owns Motorola) expects PC sales to be impacted by the RAM shortage, despite having stockpiled RAM to help keep costs down. HP is also anticipating impacts around May, despite also having a memory stockpile.
If you like to build your own PCs and you’ve been planning on making some memory upgrades, the bad news is that prices have already started rising, so you’ll need to fork out more than you would have a year ago. Alternatively, you could look at upgrading other components to improve and extend your performance, such as a new CPU and GPU, or graphics card.
But if you’re looking to purchase a pre-built computer, you might be able to pick up a new desktop or laptop PC before the price rises, assuming you have the budget to buy sooner rather than later — even if that means you’re not buying your computer on sale.
You might also want to shop for a computer that will last you a while, whether that’s one with as much pre-installed RAM as you can find or a higher performance computer than you were originally intending.
