Smartphone sector in deep crisis, with sharp price rises due to artificial intelligence

The impact is now evident on individual products. On 1 October, Samsung raised the price in South Korea of the Galaxy S26, which is already on sale: the base model rose from 1,254,000 to 1,403,600 won, an increase of almost 12 per cent. The other S26 models have gone up by 149,600 won, and the 1 TB Ultra by 270,000 won.

Apple, too, has passed on some of the costs to its new products. In the United States, the iPhone 18 Pro starts at $1,199 and the Pro Max at $1,299 – $100 more than their respective predecessors, representing increases of around 9 per cent and 8 per cent. According to a Nikkei report, Apple has also reportedly cut its component orders for October by at least 15 per cent compared with initial plans, following weaker-than-expected demand.

The situation with Xiaomi in China is even more striking. On 9 October, the company raised the price of the entire Xiaomi 17 Ultra range already on the market by 1,000 yuan: the 12/512 GB model rose from 6,999 to 7,999 yuan, an increase of 14.3 per cent; the 16/512 model from 7,499 to 8,499 yuan.

The crisis is having the greatest impact on the price tiers. It is much easier to absorb an extra fifty dollars’ worth of costs on a thousand-euro mobile phone than on one costing a hundred. This is why manufacturers are phasing out entry-level models, scaling back specifications, raising prices and shifting their product range towards the higher price tiers.

AI is therefore having a very tangible side effect far removed from data centres: it is making it more expensive to change smartphones. And the most far-reaching consequence may not be the price of a flagship model rising from 1,300 to 1,400 euros, but the gradual disappearance of truly affordable phones. This will have a particular impact on the most disadvantaged sections of the population.