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The biggest problem is the memory used in smartphones, laptops, and other electronic devices. It is precisely this memory that has become one of the most sought-after components on the technology market.
The reason? The rapid development of artificial intelligence.
Companies developing AI models are investing billions of dollars in data centers, which require vast quantities of advanced memory chips. As a result, component manufacturers are directing an increasing share of their production toward the AI sector.
For consumer electronics manufacturers, this means reduced availability of components and higher prices.
“Supply is tight at a time when consumers still want to buy devices, and memory manufacturers are passing on massive cost increases to us,” Tim Cook said in an interview with the Wall Street Journal.
The scale of the changes is significant. According to the BBC, RAM prices have more than doubled since October 2025.
This is particularly important news for the smartphone market. Today’s phones require ever-increasing amounts of memory, especially if they are to support new artificial intelligence features. Manufacturers are not only paying more for components, but they are also using more of them than they did just a few years ago.
In practice, this puts double pressure on production costs.
Geopolitical events also influence the situation.
According to experts, the war in Iran has disrupted global supplies of helium—a gas essential for the production of semiconductors. Although most consumers associate helium primarily with balloons, in the technology industry it is one of the key raw materials used in the manufacture of advanced chips.
The reduced availability of helium further increases costs throughout the entire supply chain.
Apple has not yet disclosed which products will be subject to price increases. The company has also not confirmed the prices of the next-generation iPhones.
However, analysts have little doubt that the new models may cost more than the current series. The research firm Omdia estimates that smartphones in 2026 will be, on average, about 20% more expensive than they are today.
According to experts, the iPhone 18 could cost as much as $150 more than a comparable model from the iPhone 17 series. At the same time, Apple plans to further develop AI-based features, which will require the use of even more advanced components.
Rising production costs are affecting the entire technology industry.
TSMC, the world’s largest manufacturer of advanced chips, has not ruled out further price increases. Samsung had previously warned of memory shortages. Sony raised the price of the PlayStation 5, and Nintendo announced a price increase for the Switch 2.
More and more manufacturers are facing a similar choice: raise the prices of their products, cut back on promotions, or reduce their profit margins.
According to analysts, the current situation is not a temporary market disruption.
“This is a new pricing reality, not a temporary rise in costs,” say experts quoted by the BBC.
For many years, technological advances have allowed manufacturers to offer increasingly efficient devices without a significant increase in prices. Now this trend is beginning to reverse.
The growing demand for artificial intelligence components is driving up the cost of consumer electronics. This applies not only to smartphones, but also to laptops, game consoles, and tablets.
If analysts’ forecasts prove accurate, the coming years could see the highest prices for mobile devices in history.
Rising prices for new devices may lead some consumers to consider alternatives to brand-new smartphones more often. This is especially true for premium models, whose prices are approaching levels that were, until recently, reserved for laptops. In this situation, refurbished smartphones—which offer similar capabilities at a noticeably lower purchase price—may see increased interest.
The company points primarily to the sharp rise in the prices of memory used in smartphones and computers. Growing demand from the artificial intelligence sector is also having a significant impact.
Apple has not yet confirmed the prices of its next-generation smartphones. However, analysts predict that the new models may be significantly more expensive than the current ones.
The development of artificial intelligence is driving up demand for memory and semiconductors. When component manufacturers cannot keep up with demand, component prices rise.
No. Samsung, TSMC, Sony, and Nintendo have also reported similar cost pressures. This phenomenon affects virtually the entire consumer electronics market.
ABOUT THE AUTHOR:
I’m passionate about refurbished electronics – I show that you can have great equipment without overpaying and without adding more electronics junk. On the blog, I share my knowledge and experience to inspire smarter and more informed technology choices.
ABOUT THE AUTHOR:
I’m passionate about refurbished electronics – I show that you can have great equipment without overpaying and without adding more electronics junk. On the blog, I share my knowledge and experience to inspire smarter and more informed technology choices.
