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Why AI could make your next smartphone more expensive
The rising demand for AI infrastructure is driving up the costs of semiconductor components needed for smartphones, forcing manufacturers to raise prices. Omdia forecasts a 26% decline in smartphone shipments in Africa, with a notable 34% drop in sales of devices below $100. This trend poses a significant barrier to internet access in a region where affordability is crucial for connectivity. As average smartphone prices increase by $41 to $202, consumers could face fewer choices and higher costs.
MonitorConfidence: HighShort term horizonSupply chain risk: High
Published 20 Aug 2026, 16:32 UTC6 min read
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Summary
TL;DR
- Rising AI demand causing increased production costs for smartphones in Africa.
- 26% decline in smartphone shipments expected in 2026.
- 34% drop in sales of smartphones priced under $100.
- Average smartphone prices in Africa have risen to $202.
- Manufacturers opting for higher-priced devices to maintain profitability.
Interesting facts
- Affordability remains the largest barrier to mobile internet adoption in Africa, impacting connectivity.
- Six in ten Nigerians were offline in 2025 due to smartphone affordability issues.