The cost of the next iPhone could increase by around £100 due to a shortage of memory chips and other essential components, signalling the end of the trend towards cheaper electronics, experts warn.
Francisco Jeronimo, vice-president of client devices at research firm IDC, explains: “Two things are happening at once. Component costs have risen sharply, with memory alone up more than 300% year on year.”
Ernest Doku, a mobiles expert at Uswitch, notes that prices for refurbished iPhones have stabilised in recent months. “A refurbished iPhone 16 has held steady at about £503 all summer, roughly where it was before the 18 Pro launch. Meanwhile, a refurbished iPhone 14 is about £10 cheaper than in June, but the iPhone 16 has simply stopped falling in price.”
IDC’s latest forecast predicts the steepest annual decline in global smartphone sales on record this year, with a drop of nearly 17% to just over 1 billion handsets sold. Jeronimo adds: “People are buying fewer phones and paying considerably more for those they do buy.”
He anticipates that memory prices will continue to rise well into 2027, despite a slowdown from the extraordinary spikes experienced earlier this year.
Regarding new device specifications, the iPhone 18 Pro Max features a battery capacity exceeding 20 watt-hours, which introduces additional shipping restrictions. Firmware adjustments are required to limit the maximum battery capacity when the device is shipped.
Jeronimo concludes: “Even once memory costs ease, I do not expect smartphone prices to return to last year’s levels. Price increases in this industry tend to be persistent. Once customers accept higher prices and manufacturers rebuild their margins, companies usually maintain the pricing and enhance devices through storage or feature improvements rather than reducing costs.”
“The era of cheap smartphones-or any device, to be honest-is over,” he says.