Apple and Tech Giants Raise Prices Amid Memory Chip Shortage

Apple Inc. increased the price of all iPhone models by £100, including older and refurbished stock, due to a severe memory chip shortage. The industry phenomenon, known as RAMageddon, stems from high AI demand for data center memory chips, which has pushed some component costs up to five times their previous levels.

Other major manufacturers followed suit, with Samsung and Google raising flagship phone prices by up to £80. The price hikes extend across the broader electronics sector; Microsoft increased costs for Surface computers and older game consoles, while Dell raised high-end laptop prices by as much as 25%.

Industry analysts and producers warn of long-term instability. The International Data Corporation predicts a 17% drop in worldwide smartphone sales this year, the steepest annual contraction on record. Memory producer SK Hynix suggests these shortages and price pressures could persist beyond 2030.