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‘RAMageddon’: AI memory crunch pushes phone prices up

A global shortage of memory chips, driven by the AI boom, is pushing smartphone prices higher — and analysts say the worst may not be over.

A GlobalData report titled “AI-Driven RAMageddon Triggers First Wave of Smartphone Price Hikes” says Apple, Google and Samsung have raised prices by roughly $100 on premium phones. Apple’s first foldable, the iPhone Duo, tops out at $3,199.

The cause is the AI buildout. Alphabet and Meta alone plan to spend a combined $325-350 billion in 2026, much of it on data-centre servers. That demand is steering memory factories toward AI workloads, leaving less capacity for the chips used in phones.

PC and laptop makers felt the squeeze first and raised prices earlier. Smartphone makers held out through long-term contracts until this summer’s launches broke the dam.

The report warns of further increases and fewer choices ahead. Buyers planning an upgrade may want to purchase sooner rather than later.

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