Apple has increased prices across multiple iPhone models by $100 or £100 following a global memory chip shortage dubbed RAMageddon. Driven by the AI boom redirecting production to data centers, rising DRAM and NAND costs have reversed decades of electronics becoming cheaper, impacting smartphones, computers, and gaming consoles.
A folding phone showcase from The Guardian overshadowed a stark financial reality for electronics buyers. While technology manufacturers highlight cutting-edge hardware, a worldwide crunch for memory components has driven up manufacturing costs significantly, forcing sudden price increases on everyday consumer devices.
How RAMageddon Disrupted iPhone and Apple Pricing
Apple adjusted its pricing structure following a global shortage of memory chips. The Cult of Mac reported that the iPhone 17 rose from a base price of $799 to $899, while the iPhone Air climbed from $999 to $1,099. The iPhone 17e moved from $599 to $699. Even the older iPhone 16 received a $100 price increase rather than the traditional price cut expected when newer models launch.
These adjustments align with newly announced hardware. The iPhone 18 Pro starts at $1,199, and the iPhone 18 Pro Max starts at $1,299, both coming in $100 higher than last year’s iPhone 17 Pro and Pro Max. Meanwhile, Apple discontinued the iPhone 17 Pro and Pro Max entirely rather than discounting them.
Refurbished devices are also reflecting the crunch. Apple increased prices on refurbished stock by £60 to £70 in the UK, though third-party markets have stayed relatively stable so far. Uswitch mobiles expert Ernest Doku noted that a refurbished iPhone 16 has held at about £503 all summer, roughly where it was before the 18 Pro launch,
while older models have simply stopped falling in price.
The Economics of the AI Gold Rush and Component Shortages
Industry analysts point directly to surging enterprise demand as the root cause. The Guardian reported that the fallout stems from the AI gold rush hoovering up memory chips for vast datacentres, creating a severe shortage of critical components.
The scale of the price acceleration is historic. According to Counterpoint Research data cited by Cult of Mac, smartphone memory jumped more than 80% in the second quarter of 2026 alone. Over the past year, DRAM prices have climbed about 400%, and NAND flash prices have risen more than 300%.
Component costs have risen sharply, with memory alone up more than 300% year on year.
Francisco Jeronimo, vice-president of client devices at IDC, via The Guardian
Because older hardware relies on the same expensive memory modules as current releases, manufacturers cannot easily shield previous-generation products from the financial impact.
Wider Fallout Across Laptops, Consoles, and Global Sales
The memory crunch extends far beyond smartphones, altering pricing strategies across the entire consumer electronics sector. Computer and console manufacturers have absorbed heavy pressure, forcing structural changes in hardware configurations and pricing.
- Microsoft increased Surface computer prices by up to £220, while introducing lower-RAM configurations to manage costs.
- Dell high-end laptops experienced price spikes of up to 25%.
- Microsoft raised the price of its near six-year-old gaming console to £670, up from its original £449 launch price.
- Samsung and Google added up to £80 to their flagship smartphone lineups.
IDC forecasts that the worldwide smartphone market will suffer its steepest annual contraction on record, dropping nearly 17% to just over one billion handsets sold.
Industry forecasts suggest price relief remains distant. Key memory producers, including SK Hynix, warn that component shortages could extend beyond 2030, meaning consumer electronics price increases are likely to remain sticky for the foreseeable future.
