How Much Top Smartphones Could Cost if Apple's Price Hike Spreads
Summary
Rising costs for memory chips, driven by increased demand from artificial intelligence (AI) data centers, are causing smartphone prices to rise. Apple plans to increase its prices, and experts expect price hikes for most smartphone makers, especially affecting lower-end phones the most.Key Facts
- Apple’s CEO Tim Cook said higher memory and storage chip costs make price increases “unavoidable.”
- AI data centers are using more memory chips, reducing supply for smartphones and pushing chip prices up.
- Analysts predict the average global smartphone selling price could rise by about 20%.
- Entry-level Android phones might see price increases as high as 40%.
- Premium brands like Apple and Samsung may raise prices by around 10%.
- Memory shortages are expected to last at least until 2027 due to ongoing AI demand.
- Earlier forecasts predicted smaller price increases, around 3-8%, before these memory cost rises.
- Price increases will vary by device type, with lower-cost phones hit hardest because memory costs are a bigger part of their total cost.
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