Consumers may soon have to pay more for smartphones, laptops and other electronic devices as memory and storage chip prices continue to rise. US tech giant Apple is among the leading smartphone manufacturers planning to increase the prices of some of its products to offset growing component costs.
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Apple CEO Tim Cook, in an interview with The Wall Street Journal, revealed that the company has tried to absorb the higher expenses but added that price hikes have become unavoidable. Macs and iPads are expected to be among the first products to see higher prices.
Last week, Nothing CEO Carl Pei also flagged rising costs in the smartphone industry. In a post on X, Pei said that these chips are costing more than processors and displays and can account for over half of a device's hardware cost.
Memory is now the most expensive component in a smartphone. It's more expensive than the processor, more expensive than the display, and can account for more than 50% of the total hardware bill.
— Carl Pei (@getpeid) June 12, 2026
For Phone (4a), memory costs doubled between when we decided to build the device and… https://t.co/4dJdSDwd6T
“Phone prices are going up, and they'll keep going up into next year. Since February, new phones have been launching at up to $100 more expensive than their predecessors. In India, phones above Rs 30,000 have seen price jumps of Rs 7,000 or more,” his post read.
Pei also warned that consumers should not expect major discounts during upcoming online sale events.
What Is A Memory Chip And Why Does It Matters For Your Device?
Memory chips are a key part of smartphones, laptops and other digital devices. They store data and allow the processor to access information quickly, helping devices run smoothly. Without memory chips, gadgets would be much slower and less efficient.
Demand for memory chips has surged in recent months, largely due to the rapid growth of artificial intelligence (AI). This has pushed up prices globally.
The speed of a memory chip depends on factors such as its type and data transfer rate. “The size of memory chips, particularly random-access memory (RAM), significantly affects your device's performance. If you have more RAM, your device can handle more tasks at once and store more data for quick access,” tech-major Lenovo explained on its website.
Why The Shortage?
Demand for advanced memory chips used in AI systems and data centres has increased sharply as companies continue heavy expansion into AI infrastructure. This has created a supply-demand gap that manufacturers and technology firms are struggling to manage.
According to S&P Global Ratings, memory chip prices are expected to remain elevated due to strong demand and limited supply. The agency said that the market is likely to stay tight through at least 2028.
As a result, companies such as Apple are facing higher component costs. With companies noting that they are unable to bear these costs anymore, it is now being eventually passed on to consumers. This means that consumers should expect to pay relatively higher prices for new devices.
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In India, smartphones priced above Rs 30,000 are reportedly seeing a jump of around Rs 7,000, which is a more than 20% jump in a year, as shared by the Nothing CEO in his post. If the pattern continues, premium smartphones may also see further price increases in the coming months.
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