Global Smartphone Prices Soar as Operators Seek Solutions

Mandalika, CNBC Indonesia – Smartphone prices are at risk of rising further as memory component costs increase. This could lead consumers to postpone buying new devices.

The increase in smartphone prices also presents a challenge for the telecommunications industry. To address it, mobile operators are starting to offer handset bundles with internet services and other benefits to sustain consumer interest.

Faisal Farrid, XL-XLSMART’s senior vice-president of revenue and go-to-market, said rising chipset and device prices were also affecting operator businesses. One strategy XL is preparing is to strengthen its handset-bundling offers with internet packages.

One such offer is a partnership with Samsung to sell the Galaxy S26 FE. Under the package, XL provides a large allocation of 5G data. This means consumers can consider not only the device’s price, but also the added value included in the purchase.

“What we’re doing is providing a fairly large amount of 5G data with the phone, so customers see it as a single package. They can think: ‘It’s not just about the price; at this price, I also get this much free data’,” Faisal said at the XLSMART 5G Media Experience at the Mandalika Circuit in Lombok on Wednesday (11 November 2026).

Faisal said the bundling strategy was expected to reduce consumers’ tendency to delay buying a new smartphone because of rising chipset prices. Operators are also offering additional benefits with economic value to customers.

One benefit is six months’ access to Google Gemini and Google storage. Converted into rupiah, the additional facilities are estimated to be worth around Rp700,000.

“The extra benefits we provide may have quite a substantial value. For example, six months of Google Gemini plus Google Storage could be worth around Rp700,000 when converted into rupiah, and so on,” Faisal said.

With this strategy, XL hopes customers will remain interested in buying new devices despite rising handset prices. The operator’s added benefits are intended to help consumers assess the overall value of a smartphone bundle.

“Customers can reconsider: the benefits provided by the operator alongside the handset price make this a fairly attractive bundle offer for XL customers,” he said.

Pressure from rising memory component costs is also reflected in the global smartphone market. According to Counterpoint Research’s Global Smartphone Price Increase Tracker, average retail smartphone prices worldwide rose by about 15% during 2026.

Smartphones launched in 2026 were, on average, priced around 25% higher than their predecessor models during the same period the previous year.