Consumers across the UK are being warned to brace for a sharp increase in the cost of mobile phones this year, with experts pointing to the explosive global growth of artificial intelligence as the primary driver.
The AI Memory Crunch Explained
The core issue lies in the skyrocketing demand for a critical component: RAM (Random Access Memory). This is the short-term working memory in all electronic devices, temporarily storing data for active apps and ensuring your phone runs smoothly. However, the infrastructure powering the AI revolution requires vastly more memory than consumer gadgets.
Lee Elliott, chief product officer at Compare and Recycle, explains the scale of the problem. "AI servers need significantly more RAM than our mobile and household devices," he states. With data centres being built at an unprecedented rate worldwide—there are roughly 500 in the UK, with another 100 in the pipeline—the global supply chain is buckling under the pressure.
Staggering Forecasts for Memory Costs
Market analysts are painting a stark picture of the immediate future. According to Counterpoint Research, the memory market is in a "Hyper-Bull" phase, surpassing a historic peak last seen in 2018. Their forecasts indicate severe price inflation.
Prices are projected to leap by 40-50% in the first quarter of 2026 compared to the final quarter of 2025. This follows an identical 40-50% surge already recorded between Q3 and Q4 of 2025. A further 20% increase is anticipated in Q2 2026.
To illustrate, the price of a 64GB RDIMM memory module is on a steep trajectory: it jumped from $255 in Q3 2025 to $450 in Q4 2025, and is targeted to reach $700 by March 2026.
What This Means for Your Next Phone
These component cost increases will inevitably filter down to the high street. Lee Elliott highlights the direct consequence for British shoppers. "The increasing costs of memory are going to undoubtedly have a knock-on effect on consumer’s devices, especially mobile phones," he confirms.
Given that the average person changes their phone every 4.1 years, the timing is critical. Elliott provides a clear example: "Someone who purchased a brand-new iPhone 14 in 2022 for around £849 will be paying significantly more for the equivalent model Apple releases in 2026."
He adds that unless manufacturers choose to absorb these spiralling costs—a move considered highly unlikely—the price trend for personal devices like smartphones will continue to climb upwards throughout the year.
