ISLAMABAD

Smartphone buyers worldwide may soon face higher prices as a fresh shortage of semiconductor chips and rising manufacturing costs put pressure on the global electronics industry.

Industry analysts expect the average global price of smartphones to increase by nearly 20 per cent in 2026, driven by supply chain disruptions, growing demand for advanced chips and rising production expenses.

Semiconductors are a critical component of modern smartphones, powering everything from processors and cameras to artificial intelligence features and high-speed connectivity. Any disruption in chip supplies can significantly affect manufacturing timelines and retail prices.

Manufacturers are already grappling with higher costs linked to advanced chip fabrication, logistics and raw materials, prompting concerns that consumers will bear the burden through more expensive devices.

The anticipated price hike is expected to affect both premium and mid-range smartphones, potentially slowing upgrade cycles as consumers hold on to existing devices for longer periods.

Industry experts warn that prolonged supply constraints could further strain the global smartphone market, particularly as demand for AI-enabled devices and next-generation mobile technologies continues to grow.

For emerging markets such as Pakistan, where affordability remains a key factor in purchasing decisions, rising smartphone prices could pose challenges to digital inclusion efforts and slow the adoption of advanced mobile services.

The development underscores the growing importance of semiconductor supply chains, which have become a strategic concern for governments and technology companies seeking to secure access to critical components in an increasingly digital world.