Global smartphone prices are poised for a significant increase in 2026, driven by a critical shortage of mobile processors as chipmakers prioritize the burgeoning artificial intelligence sector.
The warning comes from Xiaomi’s president, who confirmed the smartphone sector is facing a new crisis. This situation is already impacting companies and is expected to inflate retail prices for consumers soon.
Manufacturers of microprocessors are increasingly focusing production on chips for AI data centers. This strategic shift is leading to a neglect of the regular supply of chips required for mobile phones.
Industry experts indicate that prices for some mobile processors surged by up to 60% in the fourth quarter of 2025 alone. This upward trend is expected to become even more pronounced in 2026.
Xiaomi has already started implementing price adjustments due to the processor scarcity. The company cited its new Redmi K90 series as an example of models affected by these increases.
Profit margins for smartphone companies are diminishing considerably, prompting an anticipated rise in prices over the coming months due to higher chip costs. The company stated this problem extends beyond its own operations.
Major manufacturers such as Samsung and Apple are also grappling with the widespread chip shortage. This suggests the price increase trend predicted by Xiaomi is an industry-wide phenomenon, not limited to its products.
Consumers considering a new smartphone are advised to make their purchases sooner rather than later to potentially save money. Waiting until 2026 could mean encountering significantly higher prices.
The predicted price hikes will primarily affect the next generation of smartphone models. Devices currently available on the market are not expected to see price increases until 2026.