By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.
MANILA, Philippines – As demand for AI infrastructure puts pressure on memory-chip supplies, affordable smartphones are becoming a necessity as prices on new devices face mounting cost pressures worldwide.
With more everyday activities moving online, rising smartphone costs could make it harder for some Filipinos to access digital services.
A July 2026 report by the Statista Research Department tracked the growth of smartphone users in the Philippines, with the number increasing by 40.43 million between 2010 and 2025.
DataReportal’s 2025 report estimated that 97.5 million people in the Philippines used the internet.
Then, DataReportal’s 2026 report recorded 137 million mobile connections in the Philippines, compared with an estimated population of 117 million.
These data show how Filipinos are constantly online and activate numerous devices for their day-to-days.
RELATED STORY: Only 17% of Philippine businesses have a roadmap to scale AI
A roundtable discussion facilitated by Charles Cole Navarro, Principal Investment Associate of the Asian Development Bank examined the market demand for a mobile-first economy and the threat rising prices can create for Filipino livelihood.
Jelmer David Ikink, Managing Partner of Foxmont Capital Partners, mentions how Filipinos will be affected in the long term.
As applications evolve and require more processing power and storage, older smartphones may struggle to keep up or lose compatibility with newer software.
“If a phone gets more expensive, then it heavily affects their income. So the impact can be quite substantial,” said Ikink. “Old software means an app will stop working because developers can’t keep maintaining apps that handle old softwares. This makes a direct impact.
Apple’s latest line was a 20% price hike compared to previous generations.
The pressure could continue if memory-chip supplies fail to keep pace with demand.
“Memory chip prices have soared. For phones under 400 dollars, the memory cost is 60 percent of the device. For phones that are 100 dollars, they are unprofitable. If memory chips stabilize, they will continue to be unprofitable,” said Ikink.
As smartphones become increasingly important to everyday life, Filipino consumers must weigh the cost of a device against the features and capabilities they need.
A 2022 study presented at the De La Salle University Senior High School Research Congress examined how consumers weighed a smartphone’s practicality against its price.
In the same year, another study published in ResearchGate wrote how Filipinos extensively research before they purchase devices in Shopee or Lazada.
But since then, the age of AI has also affected consumer priorities. Samsung’s survey in the Philippines in 2026 saw that two out of three Filipinos are now leaning towards phones with AI capabilities.
Dr. Jonathan Illagan, Psychologist, Consumer Insights Researcher , and Co-Founder of Groundwork echoed the sentiments of Filipino priorities over price.
“When it comes to priorities, what do I need to protect? All our needs remain the same, we want to stay in touch with people, we have work, children have school, we have to fill up government papers,” said Illagan.
“Daily life is migrating to this digital space. Having good devices becomes an expense they have to protect. Confidence becomes part of the value.”
Illagan said consumers may be willing to spend more on devices that meet their needs.
“People might be willing to spend more when it addresses their priorities. Access to connectivity is different from meeting full participation,” he explained. “If they are unable to access certain tools, they will be left behind.”
Telecommunications companies and other industry players have introduced programs to make smartphone purchases more affordable.
Randy Lim, Vice President, Device and Cards Management at Globe Telecom laid out their plans and programs that can keep connectivity cost low.
Lim said these efforts aim to bridge the device affordability gap. Globe’s Gadget Xchange program allows their postpaid subscribers to trade in or replace their devices.
To replace a device, however, means that old devices need to go somewhere else.
Lim, Illagan, and Ikink echoed that the rising prices of smartphones also equates to a problem in sustainability.
Foxmont Capital Partners partnered and brought 3Cat to open in the Philippines.
3Cat is a Malaysia-based platform that sells refurbished devices. Through 3Cat, devices go through a rigorous diagnostic process and necessary repairs before being sold in the market.
“Second tech becomes the first choice,” said Karl Loo, Founder and CEO of 3Cat.
“What 3Cat tries to do is eliminate the middleman. We buy demo units, switch it out, work with telcos that would provide us trade-in stocks. 3Cat runs trade-in programs with retailers that’s getting it from a reliable source,” said Loo. “We have a diagnostics software that ensures this. We also invest in its repairs before we repackage.”
In 2022, the United Nations reported that the Philippines recorded over 540 million kilograms in e-waste. A 2026 study in Denmark by Aalborg University saw that one out of three usable mobile phones are thrown away.
While the Philippines has its own market for secondhand phones, the idea of refurbished phones can still make consumers wary.
“Secondhand is a viable first choice,” said Loo. 3Cat’s formal approach to selling secondhand devices includes payment plans and guarantees.
“Isn’t a downgrade, but it can give you access to premium devices,” echoed Illagan.
As smartphones continue to surge, practical and sustainable solutions become the best choice to continuously build the Philippines’ digital economy.
Subscribe to our daily newsletter
By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.
RELATED STORY: The rising cost of smartphones, RAM, and SSDs
Subscribe to our newsletter!
By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.
About the Author
