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Global memory chip shortages driven by artificial intelligence demand could push smartphone prices globally up by 15 to 20% in the coming months if supply constraints persist, according to market data and industry analysts.

The pressure is coming primarily from surging prices of DRAM and NAND memory chips, core components used in smartphones, computers, and vehicles.

Spot prices for DRAM have jumped by more than 600% in recent months, while NAND prices have also risen sharply as global demand for data storage expands alongside AI infrastructure.

Analysts say the shortage reflects a structural shift rather than a temporary disruption.

Semiconductor manufacturers are redirecting production capacity toward high-bandwidth memory (HBM), a specialised chip used in AI accelerators, tightening supply for conventional memory used in consumer electronics.

Industry observers describe the situation as a memory “supercycle,” breaking the sector’s historical boom-and-bust pattern.

According to them, traditionally, memory cycles lasted three to four years, but current demand has exceeded previous peaks in both duration and intensity.

Bloomberg reported that tech leaders, including Elon Musk and Apple CEO Tim Cook, have also been warning about the global crisis in the making as the shortage of memory chips is beginning to hammer profits, derail corporate plans and inflate price tags on everything from laptops and smartphones to automobiles and data centers.

Chinese media outlet Jiemian reported that Chinese smartphone makers, including Xiaomi Corp., Oppo and Shenzhen Transsion Holdings Co. are trimming shipment targets for 2026, with Oppo cutting its forecast by as much as 20%.

Massive investments in AI infrastructure by hyperscale technology companies, including Amazon, have accelerated demand for advanced memory, leaving fewer resources available for standard devices such as smartphones.

Memory plays a central role in modern smartphones, powering artificial intelligence features, high-resolution cameras, and multitasking performance. Higher component costs, therefore, feed directly into device manufacturing expenses and retail pricing.

Nigeria’s smartphone market is heavily dependent on imports, leaving retailers vulnerable to global price swings.

Mid-range smartphones are expected to face the greatest pressure because they rely on balancing affordability with competitive specifications. Manufacturers may respond by raising prices, reducing base storage options, or delaying feature upgrades.

Nairametrics reported that worldwide smartphone shipments grew for the second consecutive year, posting a 2% year-on-year increase in 2025, according to preliminary estimates from Counterpoint Research’s Market Monitor.

With the current crisis caused by chip scarcity, the global smartphone market may shrink again in 2026 as device makers cut shipments.