Why the iPhone is about to get more expensive
Apple's upcoming iPhone generation is expected to see price increases driven by a global memory chip shortage. Industry experts attribute the supply crunch to the massive demand for RAM created by the rapid expansion of artificial intelligence technologies.
Why it matters
This trend illustrates how the AI boom is creating tangible economic consequences for consumers, specifically in the form of higher prices for essential consumer electronics.
When Apple debuts the next generation of iPhones this week, they’re likely to come with an unwanted change: a higher price tag. A price hike from the supply-chain powerhouse would be the clearest sign yet that soaring memory costs have become unavoidable — with no end to the memory crunch in sight.
Call it “chipflation” or “RAMageddon.” The shortage is reversing a decades-long decline in memory costs that helped make consumer electronics more powerful without making them dramatically more expensive. The terms “memory prices” and “memory shortage” appeared in 473 company transcripts last quarter, according to data provided by AlphaSense. The entire industry is seemingly working on the problem. And yet, we’re years away from seeing it fixed.
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