Directly impacted by the shortage of memory chip supplies, retail prices in the smartphone market have been steadily rising over the past two years. Currently, this price hike is far from over, with no signs of the upward momentum stopping.
Renowned research firm FDM CCS Insight has released its Global Smartphone Market Report for Q2 2026, clearly stating that global smartphone shipments continued to decline in the second quarter due to rising component costs driven by tight global memory supply, leaving the overall industry sentiment at a low point.
The report specifically notes that since the beginning of this year, major players like Samsung and Apple have successively raised prices for some of their flagship models, with other smaller manufacturers targeting niche markets also following suit with price adjustments.
Smartphone manufacturers continue to face rising procurement costs for various components. This upward price trend is expected to persist throughout the remaining months of 2026.
Research agencies predict that the costs of core components required for smartphone production will likely remain high for an extended period. This cost pressure will not dissipate quickly and will continue to impact the entire consumer electronics market through 2027, and possibly even into 2028, making it difficult for prices to return to previous low levels.
Public statistics show that global smartphone shipments have declined year-over-year for two consecutive quarters, with total shipments in the recently concluded second quarter dropping by approximately 7%. The primary reason is the continuously rising cost for smartphone manufacturers to procure RAM and associated memory chips, forcing further increases in retail phone prices.
For average consumers, the trend of rising flagship smartphone prices will become even more pronounced. Many budget-conscious users will turn to officially certified pre-owned devices as an alternative to new phones.
Analysts predict that the overall size of the regulated pre-owned smartphone market will grow by approximately 9% in 2026. In contrast, total shipments of new smartphones may see a year-over-year decline of about 12%, indicating a significant shift in consumer spending patterns across the entire consumer electronics industry.