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‘RAMageddon’ blamed as Apple raises iPhone prices by £100 across all models

Memory chip shortage driven by AI data centre demand reverses long trend of falling electronics costs

By LineZotpaper
Published
Read Time1 min
Apple has increased the price of all iPhones by £100, including older models, attributing the rise to a severe shortage of memory chips and other critical components – a crunch industry observers are calling ‘RAMageddon’ that has reversed decades of declining electronics prices.

The price hike was unveiled alongside Apple’s first folding phone, but was overshadowed by the across-the-board increase. The shortage is the fallout from the artificial intelligence gold rush, which has consumed every available memory chip for vast data centres, leaving consumer electronics manufacturers scrambling for supply. The trend marks a sharp reversal of the historical pattern of electronics becoming cheaper over time.

The Guardian reports that the RAMageddon is affecting not just iPhones but the broader electronics market, with laptops, MacBooks and PlayStation 5s also facing cost pressures.

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Analysis

Why This Matters

  • Consumers face higher prices for smartphones and other electronics, breaking a long-standing trend of falling costs.
  • The shortage highlights the tension between AI infrastructure investment and consumer device production.
  • Expect further price increases or delayed product launches across the industry.

Background

The global semiconductor industry has experienced periodic shortages, but the current crisis is driven by unprecedented demand for high-bandwidth memory chips used in AI training and inference. Data centre operators are buying up supply at premium prices, leaving manufacturers of phones, laptops and game consoles with fewer chips at higher cost. Apple’s move signals that the crunch is now hitting mainstream consumer products.

Key Perspectives

Apple: By passing the cost to customers, Apple protects its margins while acknowledging supply constraints. Consumers: They face an unexpected £100 increase on devices that were already expensive, reducing purchasing power. Industry analysts: The RAMageddon may persist as long as AI data centre buildout continues, meaning higher electronics prices could become the new normal.

What to Watch

  • Whether other smartphone makers (Samsung, Google, OnePlus) announce similar price increases.
  • Quarterly memory chip pricing reports from suppliers like Samsung, SK Hynix and Micron.
  • Any signs of easing in memory chip supply or new fabrication capacity coming online.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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