April 3, 2026
The $700 to $999 smartphone segment is expected to become the hottest battleground next year, according to Counterpoint Research.
In a report released on April 1, the research firm said this "affordable flagship" category will see the toughest competition in 2026 because of sharply rising memory chip prices.
Memory prices already went up 40–50% in late 2025. Counterpoint expects another 40–50% jump in Q1 2026, and then a further 20% increase in Q2.
For a phone that wholesales around $800, memory now accounts for roughly 40% of the total parts cost - double what it was a year ago. If things keep going this way, the material cost for high-end phones could rise by more than $150 by the end of Q2 2026. That probably means retail prices will go up by over $200 (around 1,377 RMB).
Interestingly, this segment actually did really well in 2025. It was the fastest-growing part of the global smartphone market, with sales jumping 25% from the previous year. In Western Europe, it even became the most popular price range - people liked getting flagship features without paying full flagship prices.
For 2026, the big challenge for brands will be convincing people to upgrade. Since consumers are holding onto their phones longer than before, companies will need to prove their devices still offer real high-end performance, solid cameras, smooth software, and good overall value.
In other words, brands in the $700–$999 range will have to work harder to show that their phones are genuinely worth buying in a market where people are being more careful with their money.
