Apple has raised iPhone prices by £100 as a global shortage of memory chips pushes up the cost of making electronic devices. The increase also affects some older iPhone models.
The memory shortage comes as technology companies buy huge amounts of chips for artificial intelligence data centres. Industry experts say the pressure could continue well into 2027, with some chip shortages potentially lasting much longer.
Quick Fact
| Detail | Information |
|---|---|
| What happened | Apple increased iPhone prices by £100 in the UK. |
| Where | United Kingdom |
| When | September 2026 |
| Who is involved | Apple, Samsung, Google, chip makers and consumers |
| Main cause | Rising memory chip and component costs linked to strong AI infrastructure demand. |
| Smartphone market | IDC expects global smartphone shipments to fall by almost 17% in 2026. |
| Other affected devices | Computers, tablets and gaming consoles are also facing higher costs. |
| Current outlook | Industry experts expect memory costs to remain under pressure into 2027. |
Memory Chip Costs Raise iPhone Prices
The latest iPhone price increase highlights a wider problem in the technology industry. Memory chips have become much more expensive as demand from artificial intelligence projects grows.
Francisco Jeronimo, vice president of client devices at IDC, says memory costs have risen by more than 300% compared with the previous year.
Some memory chips now cost several times more than their previous listed prices. Manufacturers face higher production costs as a result.
Smartphone Prices Rise as Sales Slow
The price increases come at a difficult time for the smartphone market.
IDC expects worldwide smartphone shipments to fall by almost 17% in 2026. The forecast would represent the largest annual decline recorded by the research company.
Consumers are therefore facing two pressures at once. They may buy phones less often, while the devices they do purchase cost more.
Samsung and Google have also increased prices for some flagship smartphones. Their reported increases reach as much as £80.
Apple has raised prices for some refurbished devices as well. However, third party refurbished iPhones have so far shown less movement.
The memory shortage isn’t limited to smartphones.
Computer manufacturers have faced repeated price increases as memory and other chip costs rise. Microsoft has added as much as £220 to some Surface computers.
The company has also offered machines with less memory to help keep prices lower
Apple has faced the same pressure across its computer and tablet business. The company has raised prices on several Mac and iPad models during 2026.
Gaming Consoles Also Feel the Pressure
Gaming hardware has not escaped the memory shortage.
Microsoft recently raised the price of an Xbox console to £670. The same console originally launched at £449.
The company says storage and memory costs have increased by more than 2.5 times. It also expects further increases in the future.
These higher costs show how the memory shortage can affect products far beyond smartphones and computers.
Chip Shortage Sends iPhone Prices Higher
The current situation has several key factors:
• Artificial intelligence data centres are consuming large quantities of memory and other components.
• Memory prices have increased sharply during 2026.
• Smartphone manufacturers have raised prices on several models.
• IDC expects global smartphone sales to fall significantly this year.
• Computer makers have also increased prices or reduced specifications on some products.
• Refurbished phones sold through third party sellers have not yet seen the same level of price increases.
Memory Costs Push Device Prices Higher
The Ramageddon crisis shows how demand for artificial intelligence infrastructure can affect everyday technology.
Higher memory costs are already reaching smartphones, computers and gaming consoles. If the pressure continues, consumers could face more expensive devices and slower price reductions in the years ahead.
