Phone prices are expected to go up in 2026 — here's how to avoid the sticker shock
It's midrange phones' time to shine
For the past few years, I've been arguing that midrange phones offer some of the best value of any handset you can buy, seeing as how the best cheap phones we've reviewed pack in enough premium features to hold their own against pricier devices. And in 2026, I'm willing to bet that a lot more smartphone shoppers are going to come around to my way of thinking.
Midrange phones figure to be more attractive than ever this year if, as expected, phone makers get socked with rising component costs and wind up having to raise the prices of their flagship phones in response. And while we won't know what the leading device makers plan to charge for their latest phones until those prices are actually announced, the current signs are not encouraging.
You might have heard that the price of RAM is on the rise, driven by AI and its insatiable need for memory. That's causing a supply shortage and forcing device makers to pay up for chips. A National Public Radio report quotes a TrendForce analyst forecasting that demand is outstripping supply by 10%, with device makers paying 50% more for DRAM now than they did in the previous quarter. That trend is expected to continue into the new year.
Phone makers need RAM just as much as AI data centers. And the surging costs of memory could ultimately force a price increase as phone makers look to maintain profit margins on their top-selling handsets.
How flagship phones could be affected
We'll get an early indication of just how big an impact the higher cost of RAM will have on phone prices when the Samsung Galaxy S26 lineup debuts, which is tipped to launch in late February. The cost of the current Galaxy S25 lineup starts at $799 for the standard S25 model, and ranges upward to at least $1,299 for a Galaxy S25 Ultra.
A report out of South Korea claims that Samsung hasn't settled on the prices for its new models in large part because of the cost of RAM. While the electronics giant can afford to take a loss on niche devices like the Galaxy Z TriFold, the Galaxy S flagships are a big part of Samsung's mobile business, and there's only so much of the cost of RAM that the company can afford to absorb.
We're many months away from new flagship iPhones arriving, but even this fall's iPhone 18 launch faces uncertain pricing. An early report predicts Apple will have to pay more for the 2nm silicon set to debut in the iPhone 18 Pro models — a cost that could be passed on to consumers.
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Even midrange models aren't immune from price hikes. The newly announced OnePlus 15R is debuting at $699 after its predecessor cost $599. While the new phone features more advanced silicon and a much bigger battery than before, that doesn't change the fact that you're paying more for OnePlus' R series phone than you would have a year ago.
Are midrange models the answer?
Still, other midrange phones may not be subject to the same price hike that the OnePlus 15R just introduced. The OnePlus handset features a newer Snapdragon 8 Gen 5 system on chip, and while that's not Qualcomm's top-of-the-line silicon, it's still relatively new and powerful. Other prominent midrange models are likely to benefit from hand-me-down components that will keep a lid on costs.
Take the Pixel 10a, which we're expecting to see in the first half of 2026. Google is likely to use older silicon to power the budget phone, with one rumor going so far as to claim that the new model will use the same Tensor G4 chip as the current Pixel 9a instead of the Pixel 10's Tensor G5 system-on-chip. I'm not sure how much stock to put in that claim, but the bottom line is that the Pixel 10a seems likely to keep the current model's $499 starting price.
Similarly, the iPhone 17e tipped to launch before the mid-point of 2026 isn't likely to reinvent the wheel. Instead, it's expected to have the same A19 chip found in the iPhone 17. You can also forget about adding a second camera lens to the back of the iPhone 17e. Maybe that's not the most exciting update, but it will mean a phone unlikely to see a big jump in price.
Phone pricing outlook
I think midrange phones have become more attractive options in recent years because the key features people look for in phones — battery life and camera performance — are generally comparable to what you get if you pay more for a phone. AI features are also a growing part of the picture — the iPhone 16e supports the full complement of Apple Intelligence tools while the Pixel 9a offers most, though, not all of Google's flagship AI features. The updated models coming out in 2026 are likely to continue that trend, even if the new midrange models skimp on performance and other features.
That said, we don't know what prices phone makers will settle on for their flagship devices. It could be that the Samsungs and Apples of the world find ways to cut costs in other, non-essential areas to keep prices at their current level. Or, if prices do go up, we could see a boost in features that helps offset any irritation at having to pay more for a phone.
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Philip Michaels is a Managing Editor at Tom's Guide. He's been covering personal technology since 1999 and was in the building when Steve Jobs showed off the iPhone for the first time. He's been evaluating smartphones since that first iPhone debuted in 2007, and he's been following phone carriers and smartphone plans since 2015. He has strong opinions about Apple, the Oakland Athletics, old movies and proper butchery techniques. Follow him at @PhilipMichaels.
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