Rising AI Demand for Memory Chips to Increase Smartphone Costs

Nigerians could face higher smartphone prices as the global expansion of AI infrastructure increases demand for memory components, according to GSMA’s State of Mobile Internet Connectivity Report 2026. The report indicates that memory prices more than doubled between the third quarter of 2025 and the first quarter of 2026, with an additional increase of 80–90% in the second quarter of 2026.

This surge in memory costs is attributed to rising demand from AI operations and data centers, alongside manufacturers shifting away from older memory technologies used in cheaper handsets. Consequently, budget phones are under pressure from changing production priorities and higher component prices.

The report clarifies that these percentages reflect memory costs rather than direct increases in the price of complete smartphones and does not specify how much of these costs have been passed on to Nigerian consumers by retailers.