According to a report by Omdia, smartphones in 2026 are expected to lean even more heavily on artificial intelligence (AI) as a key selling point, with new flagship chipsets optimised for on-device generative AI features such as summarisation, image generation, and offline assistants. With hardware costs continuing to rise, brands are increasingly using software and AI capabilities to stand out.
As per the report, shipments of AI-capable smartphones in India more than doubled year on year in the third quarter (Q3) of 2025 and are projected to maintain a similar growth pace in 2026. The report noted that AI-capable devices are expected to account for around 12 per cent of India’s total smartphone shipments in 2025.
The report also pointed to a decline in average selling prices of AI-capable smartphones on a quarter-on-quarter basis, driven by the launch of mid-range chipsets that support AI processing. Average prices fell from $1,141 in Q1 2024 to $967 by the Q3 2025. Despite this trend, the report highlighted that AI-capable smartphones will remain a relatively expensive niche, concentrated largely in premium segments due to rising memory costs. It is expected that the overall smartphone average selling prices to increase by around 6–8 per cent in 2026, with manufacturers focusing AI-intensive features on mid-premium and flagship models, while keeping entry-level devices stripped down to control costs.
A key constraint on wider adoption remains conditions within the AI industry itself. Rapid global investments in AI data centres have triggered a sharp rise in RAM prices, which increased by more than 30 per cent in the fourth quarter of 2025 and are expected to climb by another 40 per cent in 2026.
Omdia noted that high prices and limited availability of memory will leave brands with little flexibility to add higher RAM configurations. As a result, smartphone makers are expected to depend more on software-led differentiation, expanding AI features across price points through cloud-based capabilities and new use cases to attract buyers in 2026.
