Smartphone trends 2026: higher prices and AI features explained

In 2026, smartphones will become noticeably faster and more powerful, but most buyers will need to prepare for price increases. According to Counterpoint Research, global mobile chipset shipments are expected to drop by about 7%, yet manufacturers' revenues will continue growing at double-digit rates. The industry faces a paradox: fewer devices will be produced, but they will cost more.

The main reason is the AI boom and rapid demand growth from data centers. Semiconductor manufacturers are shifting resources to produce high-margin HBM memory for servers, leading to a sharp rise in DRAM prices. This makes it increasingly difficult for companies to release affordable smartphones without losses, with the sub-$150 segment hit hardest and becoming less sustainable.

At the same time, the market is transitioning to new technology nodes: the industry is moving from 3nm to 2nm processes. Samsung has already unveiled the Exynos 2600 as the world's first 2nm GAA chip, while Apple and Qualcomm are preparing their own responses to stay competitive in the premium segment. Companies are increasingly focusing on expensive models where margins are significantly higher.

MediaTek remains the market share leader, projected to hold about 34% in 2026. Qualcomm takes second place with 24.7%, Apple maintains 18.1% in the premium segment, and Samsung is gradually increasing its share to 12.1% by promoting its own processors. Notably, roughly one in three smartphones in 2026 will cost over $500, generating more profit even with lower sales volumes.

Buyers will indeed gain enhanced capabilities: flagship devices could reach up to 100 TOPS in AI tasks, and most premium models will support offline AI functions. However, in the mid-range segment, AI will increasingly operate via the cloud to reduce costs. A full market recovery in supply isn't expected before 2027, making 2026 a year of more expensive but technologically advanced smartphones.