It’s the year of smartphone price hikes
Apple's launch of the iPhone 18 Pro and Pro Max, both $100 more expensive than their predecessors, is the latest sign that smartphone price rises have become an industry-wide trend in 2026 rather than an Apple-specific decision. Google, Samsung and smaller manufacturers such as Sony and Motorola have all raised prices by similar amounts this year, often without offering significant upgrades to justify the increases, suggesting buyers have little room to dodge higher costs by switching brands or sticking with older models.
The iPhone 18 Pro and Pro Max now start at $1,199 and $1,299 respectively, with older iPhone models also up by $100. Google's Pixel 11 starts at $899 (up from $799), Samsung's Galaxy Z Fold 8 Ultra costs $2,099, and Sony's Xperia 10 VIII is £150 pricier, while budget handsets under $100 are reportedly disappearing from the market entirely. The rises are attributed to component shortages, particularly in memory chips, driven by AI data centre construction, with Nothing's CEO noting RAM costs for one of its phones doubled before launch, and Qualcomm having also raised processor prices this month.
- Smartphone prices are rising industry-wide, not just at Apple.
- iPhone 18 Pro now starts at $1,199, up $100.
- AI-driven component shortages, especially RAM, are the main cause.
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Component shortages, especially in the memory chips used inside phones, have been getting worse through 2026 as manufacturers compete for the same supply being used to build AI data centres. This has pushed up the cost of building a phone, and manufacturers across the industry are passing that cost on to buyers rather than absorbing it.
Nearly every major phone maker, including Apple, Google, Samsung, Sony and Motorola, has raised prices this year, often by similar amounts and without adding much in the way of new features. This matters because it removes the usual options buyers have when one brand gets pricier, such as switching to a rival or keeping an older model, since costs are rising broadly across the market, including at the cheaper end.