Due to artificial intelligence, the demand for chips is increasing. And this is making them increasingly scarce and raising prices. Smartphones are also expected to become more expensive.
Artificial intelligence (AI) could be costly for consumers: the excessive demand for memory devices is making smartphones and computers increasingly expensive.
"The AI boom and the associated investments in infrastructure and research centers are having a tangible impact on the market for memory chips," Wolfgang Weber from the German Electronics and Digital Industry Association told DW.
"Analyses from the past year show a 50 percent increase in the price of these chips," Weber noted. Due to high demand, deliveries may take longer, but prices of electronic and digital devices are likely to rise.
Boom in the semiconductor market
Data from the WSTS (World Semiconductor Trade Statistics) organization, which studies the semiconductor market, indicate that for the first half of 2025 it reached a value of 346 billion dollars (293 billion euros), which means an increase of 18.9 percent compared to the previous year.
Forecasts for 2025 predict an overall growth of 22 percent to 772 billion dollars (665 billion euros), and for 2026 - an increase of over 25 percent to 975 billion dollars (827 billion euros).
At the same time, a study by the marketing company IDC (International Data Corporation) on changes in smartphone prices notes: "A more moderate scenario predicts an increase in prices by three to five percent. And the more pessimistic - eight percent".
The experts' conclusion is: "The era of cheap and affordable storage devices is ending. 2026 will likely be the year in which the technology will become more expensive due to supply problems, not due to increased demand".
Samsung: smartphones will become more expensive
Samsung President Won-Jin Lee told the "Bloomberg" agency at the end of January that "currently prices are increasing daily". "We would not want to pass this growth on to consumers, of course, but we will reach a point where we will actually have to reflect the higher costs in our products."
Apple has not yet commented on the matter. Economic analysts suggest that the concern will keep prices stable for the basic models, but there may be an increase in prices for those with a larger storage capacity.
Demand for recycled phones is growing
In the past five years, the cost of memory chips in the production of smartphones has increased significantly. Industry data shows that if in 2020 the share of costs for the memory device for the iPhone 12 Pro Max was eight percent of the total cost of the phone's components, in September 2025 for the iPhone 17 Pro Max it is already ten percent. Due to the constant increase in the cost of memory chips, this share could reach 20 percent, industry experts believe.
Currently, the market for new devices is stagnant. The reason: prices do not stop growing. But second-hand devices are increasingly in demand, according to analyses by consulting companies: in July 2025, recycled devices achieved a market share of nine percent, compared to five percent in January. "Recycled devices are now transforming from a niche product into a real market force. In some places, they even account for over 40 percent of online sales of models under 600 euros," the analyses found.