A global increase in memory chip prices is changing smartphone pricing and competition, with retail prices rising an average of approximately 15% since the start of 2026 and some models becoming nearly 100% more expensive, according to Counterpoint Research's Global Smartphone Price Trend Tracker. More than 40% of models have seen price increases, while newly launched phones cost 25% more than models released during the same period last year, the first such increase recorded by the industry. Memory has become the main factor lifting smartphone bill-of-materials (BoM, the cost of a device's components), leaving original equipment manufacturers (OEMs, companies that make branded devices) with less room to absorb costs. Price-sensitive markets have been hit hardest: India rose 21%, Asia-Pacific 19%, the Middle East & Africa 18% and Latin America 16%, compared with 10% in China, 7% in Europe and 5% in the U.S. Reduced promotions have added to consumer costs, although postpaid billing has moderated the effect in the U.S. OEMs are responding with specification cuts, smaller storage options and more 4G models, while carriers and retailers are using financing, trade-ins and installments to cushion demand. Consumers are extending replacement cycles, waiting for promotions, choosing lower-storage devices and using refurbished phones. Apple has kept iPhone pricing stable despite memory prices quadrupling since Q4 2025, while Counterpoint expects new smartphone prices, including the upcoming iPhone 18 series, to continue rising in coming quarters. Samsung is taking the opposite approach by increasing production of low-end Galaxy A-series devices, including approximately 18 million A17 and A18 units, to gain share as Chinese rivals face heavier cost pressure. Global smartphone shipments fell 7% year over year in Q2 2026, but Samsung grew 9% and led with a 23% share; Apple held 21%, Xiaomi 11%, and OPPO and vivo 8% each. The industry may be entering a structural repricing phase as AI data centers draw more DRAM and NAND flash, tightening supply for phone makers. If the squeeze continues into 2027, profits could become more concentrated in premium devices, consolidation could accelerate in lower-priced segments, and manufacturers without scale or cost controls could face elimination.