Smartphones to Get Costlier in 2026 Amidst Memory Chip Shortage

• Global memory chip shortage expected to drive prices up by 40% between January and June, impacting smartphone costs.
• Handset companies' expenses could rise by 8-15%, likely passed on to consumers, leading to higher smartphone prices.
• India's smartphone market may see a decline in 2026, with entry-level and mid/premium segments facing significant shipment drops.
• Memory chips constitute 12-16% of a smartphone's cost, disproportionately affecting budget phones.
• Smartphone makers like Xiaomi and Lava confirm price hikes are inevitable; AI data centers are exacerbating the chip shortage.

Why It Matters: Expect higher smartphone prices and potential market decline in 2026 due to persistent memory chip shortages.