Realme has issued a strong warning to smartphone buyers, hinting at a possible surge in device prices across the industry starting next year. The company’s global marketing head, Francis Wong, said that rising production costs and global chip shortages are likely to push smartphone prices higher in 2026. The statement comes just before the launch of Realme’s next flagship, the GT 8 Pro, and paints a concerning picture of what lies ahead for both consumers and manufacturers.
Global Chip Demand Is Squeezing the Smartphone Supply Chain
According to Realme, the ongoing boom in artificial-intelligence infrastructure has caused a major imbalance in the semiconductor market. Memory and storage components such as DRAM and NAND flash are being prioritized for data-center and AI server production rather than for mobile devices. This shift is driving up prices and limiting availability for smartphone manufacturers who depend heavily on these components.
The company warned that this trend is unlikely to slow down anytime soon. As demand for high-bandwidth memory and advanced chipsets continues to grow, production capacity for standard smartphone components is shrinking. That scarcity is forcing brands to pay more for parts that were once stable in price, increasing the overall cost of making new phones.
Inflation and Manufacturing Costs Add to the Pressure
Realme also pointed out that the rising cost of logistics, materials, and energy has added another layer of difficulty. With inflation persisting in major manufacturing hubs, the cost of assembling and shipping smartphones has steadily increased. Currency fluctuations in markets such as India and Southeast Asia have only made matters worse, leaving companies with thinner margins and little flexibility to maintain existing price levels.
These factors combine to form what Realme describes as an unavoidable upward curve. While the brand has built a reputation for delivering high-value devices at aggressive prices, Wong admitted that it is becoming harder for any manufacturer to maintain affordability without sacrificing performance or quality.
Growing Expectations Are Raising the Baseline Price of Phones
Consumer expectations have also evolved. Buyers now look for advanced camera systems, larger storage options, high-refresh displays and extended software support even in mid-range models. Realme’s view is that these demands have raised the baseline cost of smartphones, effectively pushing the entire market one tier higher in price. The company believes that this shift is inevitable as users continue to expect near-flagship performance from devices that were once positioned as affordable.
The upcoming Realme GT 8 Pro is expected to embody that shift. Featuring a next-generation Snapdragon processor and an emphasis on AI-driven photography, it represents the brand’s most ambitious effort yet in performance and design. However, it may also arrive with a higher launch price than its predecessor, reflecting the new economics of smartphone production.
What the Warning Means for Buyers and the Industry
For consumers, Realme’s message is clear: upgrading before the end of 2025 might be the smarter move. Prices are expected to rise across categories, from entry-level models to high-end flagships, as global supply pressures intensify. Shoppers who delay may face fewer options and higher starting prices next year.
For the wider smartphone industry, this could mark a turning point. Brands that have relied on aggressive pricing to capture market share may need to rethink their approach. Companies with vertically integrated supply chains or domestic manufacturing advantages could be better positioned to absorb the shocks. Others may have to prioritize profitability over volume, changing how smartphones are priced, built, and marketed.
A New Era of Smartphone Economics
Realme’s early warning highlights a changing reality for the mobile industry. After years of falling prices and feature-rich competition, the global chip race and production costs are forcing a reset. The era of consistently cheaper, spec-heavy phones may be nearing its end. As Realme prepares to launch the GT 8 Pro, its message carries weight not only for its own customers but for the entire market: the smartphone price war that defined the past decade is giving way to a new phase where efficiency, supply strategy, and long-term value will decide who stays ahead.
Source: The Hans India
