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ZDNET’s main highlights
- The smartphone industry is under strain because of limited supplies of memory chips
- Phones released in 2026 have failed to impress, and many have experienced price increases.
- Last year’s top phones are now available at reduced prices, making them a smarter buy compared to newer devices.
If you’re shopping for a new phone, you could find better deals among last year’s releases. The latest models, particularly mid-range options, have offered only minor improvements while also carrying higher price tags.
Also: Here’s why phones and computers will cost you more in 2026
As companies consume increasingly large amounts of memory for their AI data centers and hardware, fewer memory chips remain accessible for consumer devices. This is causing a supply crunch and driving prices upward. Phones debuting in 2026 are finding themselves competing more with their own predecessors than with rival brands.
The challenge with new 2026 phones
A December report from IDC indicates that the scarcity of DRAM and NAND chips — used in PCs, smartphones, and other consumer electronics — is placing significant pressure on the broader market. IDC anticipates the smartphone sector to remain under strain throughout this year.
Also: Samsung is shutting down Messages in July: 5 alternatives I recommend switching to now
“The cost breakdown of a smartphone relies heavily on the memory it uses,” IDC analysts noted. “For a mid-range phone, memory can account for 15-20% of the total bill of materials (BOM), while for a premium flagship, it sits around 10-15%. As memory costs keep climbing, manufacturers will probably need to raise prices substantially, reduce specs, or do both.”
A Counterpoint Research report from February reveals that RAM prices are surging, hitting triple what they were a year ago. The most severe consequences will hit the most affordable phones, which run on razor-thin margins and are more likely to see their profits disappear without a price adjustment.
Also: AI isn’t advancing in intelligence — it’s becoming more demanding – and costly
We’ve been seeing these changes reflected in Google’s Pixel 10a and Samsung’s Galaxy A57, which have seen mostly negligible updates this year. While the Google phone now retails for $450 on Amazon — down from its original $500 launch price — the Galaxy A57 costs $50 more at $550 (compared to the $500 Galaxy A56 at launch).
Meanwhile, lower-tier Motorola G-series phones have climbed by as much as $100 on the official website, as first reported by PhoneArena. While Amazon continues to list them at prior prices, any increase in the budget category hurts more than a $100 or even $200 bump on a flagship device.
For that reason, if you’re watching your wallet, you’d be wise to consider 2025 phones rather than purchasing a newer model. Here’s the silver lining.
The strongest options are already on the market (and at lower prices)
When the latest phones don’t deliver significant improvements, last year’s models start looking much more attractive, especially with price cuts. Here’s a roundup of some solid picks, based on our hands-on testing.
The newest Google Pixel 10a — powered by a 2024-era Tensor G4 chipset and older camera hardware — launched at $500 a few months back. While it’s still $300 cheaper than last year’s Pixel 10 at full retail, the Pixel 10 itself delivers more RAM (12GB versus 8GB), a dedicated telephoto lens, and PixelSnap magnetic wireless charging, and can currently be found for as little as $550 when discounts apply.
In certain cases, you might even pick up a used Pixel 10 for under that amount, with the main tradeoff being the loss of any retailer warranty. All things considered, it remains a far better value proposition.
Samsung
For Samsung fans, I’d suggest the previous year’s Galaxy S25 lineup, which features comparable specs to this year’s Galaxy S26 range — from the standard model to the Plus to the Ultra.
Also: Samsung Galaxy S26 Ultra vs. S25 Ultra: I tested both flagship phones to determine the better pick
Given the underwhelming upgrades we’ve seen in the newest phones — including no major camera or battery improvements — the S25 series is still highly recommended in 2026. Just keep in mind that Samsung may not offer the most generous trade-in deals if you purchase directly from their store.
Apple
Apple tells a somewhat different story — at least for now. After the impressive value-to-price ratio of the MacBook Neo, the iPhone 17 series carries that momentum forward. By maintaining the same pricing as the iPhone 16 while adding a versatile 18MP front-facing camera, a faster processor, and 120Hz screens on base models, Apple has significantly raised the minimum bar for buyers.
While the $600 iPhone 17e is a harder sell on pure value alone, its year-on-year improvements still surpass the mid-range alternatives from Samsung and Google, making it a solid choice this year as well.
The bottom line
That said, 2026 is looking like a year worth passing on. With supply limitations pushing costs higher and a plateau in innovation reducing the appeal of new releases, older models are presenting far better value right now.
While a market correction may happen eventually, the days of “more for less” are becoming increasingly rare — and this stagnation has become the new normal. That makes it all the more essential for consumers like you to make smart purchasing decisions, not just splashy ones.
