Apple has redrawn the pricing map for every smartphone maker
Apple’s latest price increases on laptops and tablets signal a structural shift where smartphone price increases are no longer a temporary reaction to supply shocks but a new baseline for what flagship and mid-range phones will cost in the coming years, as rivals like Samsung lose the incentive to hold the line. Apple has raised prices for multiple MacBook and iPad models, saying it had “shielded customers from increases so far” but had “reached a point” where raising prices had become necessary. These are not token tweaks: the 512GB MacBook Air is now USD 200 (approx. RM920) more expensive, the 1TB MacBook Pro is up by USD 300 (approx. RM1,380), and the 128GB iPad Air has risen by USD 150 (approx. RM690). In one market, a MacBook Pro with the M5 Pro chip now costs about Rs 1 lakh more.
This matters for phones because Apple’s move removes the last fig leaf other brands were using. When the most profitable player admits it must charge more, anyone still freezing prices starts to look irrational to investors. Apple’s statement is not only an explanation; it is permission for the rest of the industry to follow. The key shift is psychological: consumers are being told, bluntly, that the era of stable gadget prices is over, and competitors now have air cover to make the same argument without being undercut.
Memory chip shortages and AI demand make higher prices stick
The core driver behind these smartphone price increases is not greed at the checkout; it is silicon deep in the supply chain. Rising memory costs, caused by supply chain issues and huge demand from AI data centers, are pushing up the cost of every tech product built around chips. Much of these recent hikes have been forced by the relentless rise in memory chip prices driven by AI demand, where supply is extremely tight and new capacity will take years to appear. Contract prices for conventional DRAM have already doubled this year and are expected to keep climbing throughout 2026 and into 2027.
This isn’t the familiar boom-and-bust memory cycle. Analysts expect the shortage to continue well beyond 2028, and even when more factories come online, prices are unlikely to return to past levels. History backs this: during the COVID-era chip shortage, consumer electronics became more expensive, and when supply chains stabilized, prices did not revert to their old norms because manufacturers had no incentive to cut more than necessary. In other words, the supply shock is temporary, but the price level is not. Once memory becomes structurally more expensive, flagship phone costs follow — and then stay there.
Samsung’s era of predictable Galaxy prices is over
Samsung has already started moving in lockstep with this new reality. It has raised prices for several mobile devices quietly this year, with more increases likely for upcoming products. The 512GB Galaxy Z Flip 7 now costs USD 80 (approx. RM370) more, the 256GB Galaxy S25 FE is up by USD 40 (approx. RM185), and the 512GB Galaxy S25 Edge has risen by USD 80 (approx. RM370). Its flagship Galaxy Tab S11 Ultra saw a USD 100 (approx. RM460) increase, while the 512GB version climbed by USD 180 (approx. RM830). Instead of announcing these changes, Samsung applied them quietly, keeping base-variant phone prices unchanged for now.
Here’s where Apple’s move becomes decisive. One analysis notes that Apple’s announcement “remove[s] the last remaining cover” for any company still trying to manage hikes in silence. With its biggest rival openly charging more, Samsung can raise even base Galaxy prices without worrying it will be undercut. The era when you could predict each new Galaxy generation’s price is gone; even if memory markets calm, prices are unlikely to fall back by the same amount they rose. If a future Galaxy S27 Ultra lands at USD 1,499 (approx. RM6,900), the odds of it dropping back to USD 1,299 (approx. RM6,000) are slim. The new number becomes the number.
Why this is structural, not a passing spike
It is tempting to treat these smartphone price increases as another wave that will wash over and recede. That is the wrong way to read this moment. Analysts expect memory shortages to run beyond 2028, and even once fresh capacity arrives, the market is more likely to stabilize at a higher plateau than to roll back to earlier prices. The market may find equilibrium where memory prices do not climb as aggressively but remain higher for longer.
Manufacturers have seen this movie before. During the previous chip crisis, many raised prices but did not restore old tags when supply normalized. They learned that customers grumble yet adapt, especially when the whole industry moves together. Today, companies under pressure to show revenue growth are using this moment to reset their price structures. They pass more of the cost to buyers, juggle product tiers, and sometimes quietly downgrade components so the sticker stays familiar while the value shrinks. In practical terms, that means the price ladder itself shifts upward: what counted as mid-range creeps toward yesterday’s premium, and true flagship phone costs push further out of reach.
What higher prices mean for ordinary buyers
For consumers, the impact is blunt: tech in general is getting more expensive, and smartphones are at the center of that squeeze. People are sensitive to price, and companies know it. But in a world where every brand faces the same memory chip shortage and rising costs, options shrink fast. An analysis notes that contract DRAM prices apply “to every device that Samsung manufactures, sells, and ships into the hands of its customers”.
That leaves buyers with worse choices. One outlook warns that many consumers may have no option but to either delay upgrading or pay more. Products that are truly essential will still sell, but at higher prices, while non-essential upgrades slow. Meanwhile, companies that weather this period will do so by shifting costs to buyers and tweaking lineups, sometimes by cutting features while preserving price optics rather than real value. The uncomfortable conclusion is that Apple’s price hikes did not start this trend — but they made it explicit. Smartphone shoppers now live in a market where “cheap enough” flagships are the exception, not the rule, and that shift is unlikely to reverse.
