Smartphones are becoming more expensive across markets, and the latest price changes point to a problem far beyond individual brands. The global shortage of memory chips is pushing up production costs for phones, laptops and other electronics.
Apple, Samsung and Google have all raised prices this year. In the UAE, Apple increased the price of the iPhone 17 by AED 400 even though the device itself did not change. The company also raised prices for several other existing iPhone models.
The biggest pressure is coming from DRAM and NAND memory. These chips provide working memory and storage for smartphones, but demand from artificial intelligence infrastructure changed the supply equation.
Memory manufacturers are directing more production towards high-bandwidth memory (HBM), which powers AI accelerators in data centers. That leaves less capacity for conventional memory used in smartphones and laptops. The shortage could continue through at least 2027, with some industry projections extending the supply imbalance beyond 2030.
The impact is already visible in component costs. DRAM and NAND prices have risen sharply, leaving manufacturers with fewer options to protect margins without increasing retail prices.
Apple's recent price changes are particularly notable because older iPhones normally become cheaper after a new generation arrives. Instead, several existing models received price increases.
Google also raised the price of its Pixel 11 Pro and reduced memory on the base Pixel 11 amid the supplier-driven RAM shortage. Samsung is also reportedly considering higher prices for some Galaxy models.
Indian buyers are also seeing significant increases. Reuters reported that Apple raised prices on existing iPhones in India by as much as 41% after unveiling its latest models. The iPhone 17's lower-storage variant rose nearly 21% to Rs. 99,900, while the 1TB iPhone Air saw a 41% increase to Rs. 224,900. The country's price-sensitive smartphone segment faces greater risk because memory costs represent a larger portion of lower-cost devices.
Also Read: Dubai iPhone Rush: 2 Men Spend Nearly Rs 1 Crore On 36 Devices, 40 More Booked