Apple recently unveiled its first folding phone during a major product launch, but the event also brought news of a £100 price increase across all iPhone models, including older versions. This rise is linked to a global shortage of memory chips, driven by high demand from the artificial intelligence (AI) industry. Memory prices have surged more than 300% compared to last year, according to Francisco Jeronimo, vice-president of client devices at IDC. The increased cost of these components is being passed on to consumers, as even older iPhone models use the same expensive memory as newer ones. Apple is not alone in raising prices. Samsung and Google have also increased the cost of their flagship phones by up to £80. Apple has raised the price of its refurbished models by £60 to £70, including the older iPhone 15, which is no longer sold new. However, third-party refurbished iPhone sellers have not yet passed on these price hikes, with some models even seeing price reductions. Most smartphone manufacturers, except Apple, have stopped producing older models that were no longer profitable. This has hit the lower end of the market especially hard. IDC predicts a significant drop in global smartphone sales, with a nearly 17% decline to just over 1 billion units this year. The rising cost of memory and chips has also impacted computer manufacturers, who have raised prices multiple times in the past 18 months. Microsoft increased the price of some Surface computers by up to £220 and released models with less memory to keep costs lower. Dell raised the prices of its high-end laptops by up to 25%, and Framework, a laptop maker, has had to adjust prices frequently due to fluctuating costs. Apple also raised the price of its lower-cost MacBook Neo by £100, along with most models in its Mac and iPad lines in June. Even video game consoles are not immune to these price increases. Microsoft raised the price of its nearly six-year-old Xbox console to £670, up from its original £449. Microsoft attributes this to a more than two-and-a-half-fold increase in storage and memory costs, which are expected to double again by autumn 2027. Key memory producers like SK Hynix suggest that shortages could persist beyond 2030. Jeronimo predicts memory prices will continue to rise through 2027, even if the pace of increase slows. He notes that once customers have adjusted to higher prices, companies are likely to maintain them, adding value through features or storage rather than lowering costs. Jeronimo concludes that the era of inexpensive smartphones and other devices is over.