Rising global memory chip prices may push smartphone prices up by 15 to 20 per cent in Nigeria if current supply pressures persist, analysts have said.
The surge is driven by increasing demand for DRAM (Dynamic Random Access Memory) and NAND flash memory, key components used in smartphones, computers and vehicles.
According to Bloomberg data, spot prices for DRAM have risen by more than 600 per cent in recent months, while NAND prices have also climbed due to expanding global demand linked to artificial intelligence infrastructure.
Analysts say the development reflects a structural shift in the semiconductor industry as major technology companies invest heavily in AI systems.
They note that companies such as Amazon are directing fabrication capacity toward high-bandwidth memory (HBM) used in AI accelerators, tightening supply for conventional memory used in consumer electronics.
A smartphone dealer at Alaba International Market in Lagos, Mr Ndubusi Ikenna, said the situation could negatively affect the phone business.
“The memory chip crunch crisis is frightening. I fear for our smartphone business.
“Prices are already high; raising them again could make customers retreat and we are going to have low sales,” he said.
Market analysts say rising memory costs could directly affect smartphone production and pricing because memory is a key component in modern devices.
They added that mid-range smartphones are likely to be most affected, as manufacturers may respond by increasing prices, reducing storage capacity, or delaying feature upgrades.
Industry experts also warned that prolonged supply constraints could force smaller smartphone brands out of the market as larger manufacturers secure priority chip supplies.
Nabila Popal, Research Director at IDC, said the era of cheap smartphones may be ending.
“The days of cheap smartphones are gone. Even when the crisis eases, we do not expect memory prices to return to 2025 levels,” she said.
Analysts advised consumers to hold on to existing devices where possible as prices of new phones may continue to rise in the coming months.
