The global smartphone average selling price (ASP) is expected to reach $565 in 2026, up from $467 in 2025. That’s a record 21% increase, according to Omdia.
The surge comes as vendors deal with higher component costs. DRAM and NAND flash memory prices surged more than 80% in the first quarter of 2026, with more increases seen in the second quarter. While prices may stabilize later this year, costs remain high, pushing brands to pass the burden to buyers.
To protect margins, vendors are cutting back on low-end models and focusing on mid-to-high-end smartphones. This shift hits emerging markets the hardest, where budget devices drive demand. In developed markets, premium phones dominate, so the impact is less severe.
Almost every major brand has already raised retail prices to offset higher manufacturing costs, with Apple being the exception (for now). Analysts note that vendors are also leaning on services, subscriptions, and ecosystem devices to balance revenue.
Also Read: Global smartphone shipments drop in 2026 as prices increase
Omdia expects the market to stabilize in 2027 as memory prices plateau, with a readjustment phase by early 2028. Until then, consumers worldwide will face higher smartphone prices, as vendors prioritize value over volume.
