I would buy a phone now because smartphone prices are facing a second unexpected challenge

By now, you’re probably aware of smartphone prices going up across the industry due to rising memory costs and shortages affecting said memory components. As if this wasn’t enough, a new challenge has arisen unexpectedly and prices are very likely going to see another upset in the second half of this year.

Memory shortages driving up prices

Just in case you weren’t aware, new AI data centers being built all over the world have led to a massive spike in demand for memory. This demand emerged suddenly and without much prior warning, because of which the tech industry as a whole was not ready for it.

Memory modules are being bought up by big players like Apple at insane prices and smaller companies are projected to go bankrupt soon. The shortage of memory has forced basically every phone manufacturer to hike up the prices of their flagship smartphones.

A second challenge has emerged

According to a new report (translated source), prices for other components are now expected to go up in cost as well. Affected parts include but are not limited to the following:

• PCBs (printed circuit boards)
• Copper thin films
• Display component materials, including glass
• Foldable film materials

“Alarming” rise in costs

This has been described as an alarming scenario. Furthermore, companies who failed to secure large volumes of components in advance will either be priced out of the market entirely or have to resort to large price increases which might drive potential customers away.

According to the report, smartphone prices are expected to rise once again in the second half of this year and the first half of next year as well.

Buy a phone now

Honestly, today might be the second best time to buy a phone, with the first best time being last year. I’m also curious how this is going to affect the prices of the iPhone 18 Pro models and the foldable iPhone Ultra which are coming out in the second half of this year.

The Galaxy S27 series might also be affected early next year, alongside the base iPhone 18, the iPhone 18e, and the iPhone Air 2. Thankfully, some reports have indicated that this surge in industrywide pricing should start calming down in the second half of 2027. I sure hope it does.

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