The global investment boom in AI infrastructure is triggering a chain reaction, with storage semiconductor prices skyrocketing and the impact directly spilling over into the end IT device market. Industry insiders predict that the retail prices of smartphones, tablets and other products to be launched in 2026 could surge by as much as 20%.
 
The core driver behind this round of price hikes lies in the structural shift of storage chip production capacity. Since 2025, leading tech companies and hyperscale data centers have been ramping up their AI initiatives, fueling a surge in demand for high-value-added storage products such as High-Bandwidth Memory (HBM), server DRAM and enterprise-grade Solid-State Drives (eSSD). Semiconductor production lines are prioritizing these high-margin orders, which has squeezed the supply of memory chips for smartphones and tablets, consequently driving up prices sharply.
 
Data from multiple market research firms supports this trend. A report by Counterpoint Research indicates that smartphone memory prices are expected to rise by another 40% by the second quarter of 2026, pushing up smartphone manufacturing costs by 8% to 10% and leading to an average selling price increase of approximately 6.9%. TrendForce also points out that smartphone manufacturing costs will climb by at least 5% year-on-year in 2026 due to rising memory prices. Notably, the share of memory costs in total smartphone manufacturing costs has surged from the previous 10%-15% to over 20%.
 
Signals of price hikes in the end market are becoming increasingly clear. With only two months left until its launch, the price increase of Samsung's next-generation flagship Galaxy S26 series has become an industry consensus, even though the company maintained the pricing of its predecessor, the Galaxy S25, launched in early 2025, amid soaring prices of core components including memory chips. It is highly likely that Apple's upcoming iPhone 18 and a host of Chinese brand smartphones will also join the price hike wave.
 
Macquarie, an Australian investment bank, stated bluntly in a recent report: "Against the backdrop of an overall memory supply shortage, the market is in disarray, and IT device manufacturers are struggling to secure memory supplies even if they offer higher procurement prices."