Smartphones are about to get scary expensive in South Africa
South African mobile network operators have warned that smartphone and laptop prices are expected to rise sharply in 2026 due to a global shortage of memory and flash storage chips.
DRAM and NAND flash prices have skyrocketed since late 2025 due to a surge in demand for processing power and storage in data centres powering artificial intelligence (AI) capabilities.
Data centre products generally have higher profit margins, making them more attractive customers for chipmakers. As a result, much of the supply is going towards AI giants, leaving little for consumers.
With high demand and low supply comes increased prices. In November 2025, South African tech distributor Syntech warned that the hikes were part of a fundamental shift rather than a quick spike.
Several online PC hardware retailers in South Africa have observed the prices of DDR memory sticks and solid-state drives more than triple over the fourth quarter of last year.
They told MyBroadband that the price increases were likely to spill over to many more tech gadgets that require RAM and storage.
South Africa’s top smartphone brand, Samsung, and Chinese companies Xiaomi and Realme have all warned of potential price hikes for their devices.
In the smartphone market, Counterpoint Research forecasts global shipments will shrink by 2.1% in 2026 due to higher memory costs.
As of December 2025, it was forecasting average smartphone selling prices to increase by 6.9% in 2026. That was already up from a 3.6% increase expectation in September 2025.
In a mid-December report, the International Data Corporation (IDC) estimated average selling prices would rise by 3% to 8%, depending on the severity of the memory shortage.
South Africa’s fourth-largest mobile network, Cell C, had a much bleaker outlook for the local market, anticipating increases of 30% to 40% over the next two months.
However, the mobile network stressed that original equipment manufacturers must still provide precise adjustments.
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Cell C said it was closely monitoring developments and engaging with its partners to ensure it managed the impact responsibly.
“Our priority remains to provide customers with competitive pricing and transparent communication as market conditions evolve.”
Cell C recommended that consumers act quickly to get the best possible prices. “The best strategy is to buy sooner rather than later,” Cell C said.
“Shoppers can look to value‑focused brands or make use of instalment plans to lock in current pricing.”
MTN South Africa said it has already seen the prices on some of its smartphones increase, with the most significant impact being on budget and mid-tier devices.
In these smartphones, memory accounts for a larger share of total production costs. That has led many manufacturers to raise prices, adjust specifications, or limit lower-margin models.
IDC vice president of client devices Francisco Jeronimo expects Android manufacturers to revert to 4GB RAM for some of their budget devices, down from 8GB and 6GB.
The price increases are also expected to affect premium smartphones, which use the latest memory technology, which is in greater demand for AI applications.
“Entry-level smartphones remain the most exposed due to tight margins, while mid and premium devices are also impacted as next-generation, AI-capable chipsets require more RAM and storage,” MTN said.
MTN recommended that customers consider contract deals and operator promotions, choose memory configurations carefully, and time purchases around promotional periods, to offset rising handset costs.
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