Why iPhones Will Probably Get Even More Expensive

Apple is set to increase prices across its product lineup as surging demand for memory and storage chips from AI developers creates a global supply bottleneck. Historically, Apple leveraged its massive purchasing power to dictate terms to chip manufacturers, but the rapid expansion of AI infrastructure by companies like Microsoft, Google, and Meta has forced the tech giant to compete for limited components. This shift has effectively reversed the long-standing trend of deflationary consumer electronics, with costs for memory and storage chips quadrupling. While these price hikes impact the broader consumer technology market—including gaming consoles and automotive electronics—Apple is using its relative stability to gain market share against smaller Android competitors struggling to absorb these rising costs. Consequently, consumers should expect higher price tags for future devices as the industry grapples with this unprecedented supply chain disruption.