Follow ZDNET: Add us as a preferred source on Google.

ZDNET's key takeaways

• The smartphone market is facing pressure due to the supply constraints of memory chips
• Phones launched in 2026 have been underwhelming, and many have seen price hikes.
• The top phones from 2025 are discounted now, making them a better purchase than newer devices.

If you're in the market for a new phone, you might be better off buying one that was released last year. Recent models, especially midrangers, have come with iterative upgrades while also seeing price hikes.

Also: Why you'll pay more for phones and computers in 2026

As businesses scoop more and more memory for their AI data centers and hardware, fewer memory chips are available for consumer products. This is creating a shortage and subsequent price increases. The phones launched in 2026 are facing tougher competition from their predecessors than from their rivals.

The dilemma with new phones in 2026

According to a December report from IDC, the shortage of DRAM and NAND chips used in PCs, smartphones, and other consumer electronics is putting pressure on the overall market. IDC expects the smartphone market to continue facing pressure this year. 

Also: I measured 5G signals of AT&T, T-Mobile, and Verizon in a small town - here's what the data says

"The cost structure of a smartphone is heavily dependent on the memory used," IDC analysts explained. "For a mid-range device, memory can represent 15-20% of the total bill of materials (BOM), while for a high-end flagship device, it is around 10-15%. As memory prices continue to surge, OEMs will likely have to raise prices significantly, cut specifications, or both."

A Counterpoint Research report from February states that RAM prices are spiking, reaching three times last year's levels. The harshest after-effects will be on the cheapest phones, which operate on already-thin margins and are more likely to see their profits evaporate without a price increase.

Also: AI isn't getting smarter, it's getting more power hungry - and expensive

We have been noticing these shifts in Google's Pixel 10a and Samsung's Galaxy A57, which are largely unchanged this year.  While the Google phone is now down to $450 on Amazon compared to its $500 launch price, the Galaxy A57 is $50 more expensive at $550 (versus the $500 Galaxy A56 at launch).

On the other hand, lower-end Motorola G-series phones are now up to $100 more expensive on the official website, as first spotted by PhoneArena. While Amazon is still selling them at old prices, any price hike in the budget segment stings more than a $100 or even a $200 raise on a flagship phone. 

That's why, if you're on a budget, you should look at 2025 phones instead of buying a newer model. Here's where the good news comes in.

Your best alternatives already exist (and for less money)

When new phones don't offer meaningful upgrades, older ones become more appealing, especially at discounted prices. Here's a breakdown of some worthwhile options, based on our testing.

Google

The latest Google Pixel 10a, with an outdated Tensor G4 chipset from 2024 and older cameras, launched at $500 a few months ago. While it's still $300 less than last year's Pixel 10 at retail price, the Pixel 10, which offers more RAM (12GB versus 8GB), a dedicated telephoto camera, and even PixelSnap magnetic wireless charging, can be had today for as low as $550 -- pending discounts. 

In some cases, you may even be able to buy a second-hand Pixel 10 device for less than that, with the biggest caveat being that you void any retailer's insurance. Objectively speaking, it's still a much better-value phone option.

Samsung

For Samsung, I'd recommend last year's Galaxy S25 series, which includes models spec'ed similarly to this year's Galaxy S26 series, from the base model to the Plus to the Ultra. 

Also: Samsung Galaxy S26 Ultra vs. S25 Ultra: I compared the flagship phones to decide the better buy

Considering the modest upgrades we saw in the latest phones, including no major camera or battery changes, the S25 series is still highly recommended in 2026. Just don't expect Samsung to offer the most aggressive trade-in offers if you decide to buy one directly from the store.

Apple

Apple's trajectory looks different -- at least for now. Following the high value-for-money debut of the MacBook Neo, the iPhone 17 series maintains that momentum. By holding the line on pricing relative to the iPhone 16 while introducing a flexible 18MP selfie camera, a faster processor, and 120Hz displays on base models, Apple has significantly raised the floor for shoppers.

While the $600 iPhone 17e is a tougher sell on value alone, its year-over-year upgrades still outpace midrange offerings from Samsung and Google, making it, too, a viable option this year.

Bottom line

But as it stands, 2026 is shaping up to be a "skip" year for consumers. With supply constraints driving prices up and innovation plateaus diminishing returns, older models currently offer far superior value. 

While we can hope for a market correction, the era of "more for less" is less frequent by the day -- and this stagnation is the new normal, making it all the more important for consumers like you to shop smarter, not harder.