I've tested every major phone release in 2026 so far - and my buying advice is changing this year

2026-04-20 · Source: News and Advice on the World's Latest Innovations | ZDNET · Field: Technology & Digital — Internet of Things (IoT) & Connected Devices · Depth: Fundamental Awareness, short

Summary

The smartphone market in 2026 is experiencing significant pressure due to a global shortage of DRAM and NAND memory chips, primarily driven by increased demand from AI data centers. This scarcity is leading to higher manufacturing costs for smartphone OEMs, who are responding by raising prices, cutting specifications, or both. Consequently, many phones launched in 2026, particularly mid-range devices, offer underwhelming upgrades compared to their predecessors while also seeing price hikes. For instance, the Samsung Galaxy A57 is $50 more expensive than its predecessor, and some Motorola G-series phones are up to $100 pricier. This situation makes discounted 2025 models, such as the Google Pixel 10 or Samsung Galaxy S25 series, more appealing due to their better value proposition.

Key takeaway

For consumers in the market for a new smartphone, you should prioritize value over the latest release in 2026. Given the current memory chip shortages and modest upgrades in new models, your best strategy is to explore discounted 2025 flagship phones like the Google Pixel 10 or Samsung Galaxy S25 series, which often provide superior features and performance at a lower cost than comparable 2026 devices.

Key insights

Memory chip shortages are driving up smartphone prices and limiting innovation, making older models a better value.

Principles

• Memory costs represent 10-20% of smartphone Bill of Materials.
• AI data center demand impacts consumer electronics supply.

In practice

• Consider 2025 smartphone models for better value.
• Compare older flagships (e.g., Pixel 10) against new mid-range devices.

Topics

• Smartphone Market
• Memory Chip Shortage
• Smartphone Pricing
• Google Pixel Phones
• Samsung Galaxy Phones

Best for: Investor, CTO, VP of Engineering/Data, General Interest, Tech Journalist, Consultant

Related on AIssential

• Morgan Stanley warns of 16% drop in Android phone shipments — Rising AI-driven memory chip costs are significantly impacting smartphone shipment forecasts, especially for Android devices.
• Nothing CEO says phone prices are going to keep going up — RAM shortage is driving significant, sustained increases in smartphone prices globally.
• Apple confirms price increases are coming - how much will it cost you? — The surge in AI demand for memory chips is forcing Apple to implement unavoidable product price increases.
• Samsung Galaxy S26 Ultra vs. Google Pixel 10 Pro XL: This one's seriously close — Choosing between flagship Android phones involves balancing software features, display technology, performance, and camera capabilities.
• Microsoft raises Surface prices by up to $500 amid RAMageddon — Global memory shortages, driven by AI demand, are causing significant price hikes across the PC market.
• Samsung says the RAM shortage could get even worse next year — AI data center demand is intensifying a global RAM shortage, driving up prices and extending supply shortfalls.

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Editorial summary, takeaway, and curation by AIssential. Original article published by News and Advice on the World's Latest Innovations | ZDNET.