Why Your Next Phone Will Cost More

A worldwide shortage of memory chips is pushing phone prices up by 3-8% and laptop prices by as much as 20% during 2026. Read why it is happening and decide what a smart buyer should do.

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1. Before you read

What do you think is the main reason electronics get more expensive? Choose the answer you expect the article to give.

2. Reading: The memory chip shortage

If you are planning to buy a new phone or laptop in 2026, prepare to pay more. Analysts forecast that phone prices will rise by 3-8%, while some laptops could cost up to 20% more. The reason is a worldwide shortage of memory chips.

Memory chips are small components that store data inside almost every electronic device. Your phone uses them to hold photos, apps and videos, and your laptop needs them to run several programs at the same time.

The trouble began when data centres, the enormous buildings full of servers that power artificial intelligence services, started buying memory chips in record numbers. Manufacturers cannot produce chips fast enough to satisfy both data centres and device makers. When demand is higher than supply, prices rise, and phone companies pass these extra costs on to their customers.

So what can buyers do? Experts suggest three options: buy now before prices climb further, keep your current device for another year, or choose a refurbished model. If a new phone is not in your budget, waiting until supply recovers may be the smartest plan.

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Data centres like this one now buy record numbers of memory chips to power AI services.

3. Business vocabulary

Match each business word from the article with its definition.

4. Comprehension check

Choose the best answer according to the article. Questions 5 and 6 ask you to read between the lines.

1. How much more could some laptops cost in 2026?

2. What do memory chips do inside a device?

3. Why did the shortage begin?

4. According to the article, what happens when demand is higher than supply?

5. (inference) What can we infer about artificial intelligence services?

6. (inference) What does the writer suggest about waiting to buy a new phone?

5. Use the new vocabulary

Complete each sentence with one word from the box.

supply · demand · shortage · manufacturer · component · forecast · budget · upgrade

1. That factory is the largest chip ______ in the region.

2. When a product becomes popular, ______ for it grows very quickly.

3. There is a ______ of spare screens, so repairs are taking longer than usual.

4. The battery is an essential ______ of every laptop.

5. Analysts ______ that prices will start falling next year.

6. A new laptop is simply not in our ______ this month.

7. If ______ increases, prices usually come back down.

8. I would like to ______ my phone to the newest model, but it costs too much.

6. Cause and effect: linking words

Choose the linking word that fits each sentence grammatically and logically.

1. Phone prices are rising ____ memory chips have become more expensive.

2. ____ the chip shortage, some laptops now cost 20% more.

3. Demand is much higher than supply. ____, prices are going up across the market.

4. Data centres bought record numbers of chips. ____, there are fewer chips left for phone makers.

5. Manufacturers cannot keep up with demand. ____, customers will pay more for devices in 2026.

7. Your opinion

Is it worth upgrading your phone every year? Write 80-100 words giving your opinion. Use at least three words from Exercise 3 and two linking words from Exercise 6.

When you finish, check your answers and submit the worksheet.

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