Full Breakdown
Apple’s iPhone Prices Rise Amid “RAMageddon” Chip Shortage
By Drooid · · How we work
The Price Hike and Its Immediate Scope
Apple’s latest product launch introduced its first folding phone and, simultaneously, a £100 increase across the entire iPhone lineup, including older models still sold as refurbished. Refurbished iPhone 16 units have remained around £503 throughout the summer, while the iPhone 14 has slipped roughly £10 in price since June. Apple also raised the price of its refurbished stock by £60-£70 and added £100 to lower-cost MacBook Neo models, as well as price lifts across most Mac and iPad lines in June.
Memory Chip Shortage Drives Costs
The price surge is attributed to a severe shortage of DRAM memory chips, dubbed “RAMageddon,” caused by an AI-driven demand spike that has hoarded chips for data-center use. Memory component costs have risen sharply, with memory alone up more than 300 % year-on-year, according to Francisco Jeronimo, vice-president of client devices at research firm IDC. Some chips are now five times more expensive than previously listed. Major memory producers, including SK Hynix, warn the shortage could extend beyond 2030.
Market Forecasts and Sales Impact
IDC’s latest forecast predicts the steepest annual contraction in worldwide smartphone sales on record, a decline of almost 17 % to just over 1 billion handsets. Jeronimo notes, “People are buying fewer phones and paying considerably more for those they do buy.” The price pressure is not limited to Apple; Samsung and Google have added up to £80 to their flagship phones, while PC makers such as Dell have seen high-end laptop prices jump by as much as 25 %.
Official Statements & Responses
IDC’s Jeronimo reiterates that memory price spikes are “extraordinary” and are expected to remain sticky through 2027, even as the pace of increase slows.
*Verbatim Quotes*
- “Two things are happening at once,” — Francisco Jeronimo, the vice-president of client devices at research company IDC
- “A refurbished iPhone 16 has held at about £503 all summer, roughly where it was before the 18 Pro launch,” — Ernest Doku, a Uswitch mobiles expert
- “People are buying fewer phones and paying considerably more for those they do buy,” — Francisco Jeronimo, the vice-president of client devices at research company IDC