AI-fueled chip scarcity drives up smartphone costs | EUROtoday

The advantages of synthetic intelligence (AI) might come at a excessive value for shoppers. Surging demand for reminiscence chips is driving up the value of smartphones and computer systems — together with in Germany.

“The AI boom, along with the massive investments in infrastructure and data centers that come with it, is having a noticeable impact on the memory chip market,” Wolfgang Weber, CEO of the German Electro and Digital Industry Association (ZVEI), advised DW.

“According to analyses by the World Semiconductor Trade Statistics (WSTS) institute, costs for these chips rose by 50% final 12 months,” Weber mentioned. As a outcome, shoppers might face not solely longer supply instances but in addition larger costs for digital and digital gadgets.

“Bottlenecks in such key technologies pose a serious problem for our economy,” the affiliation’s head warned. “The chip shortage alone between 2021 and 2023 caused more than €102 billion ($121 billion) in economic damage in Germany.”

Boom within the semiconductor market

The newest figures from WSTS underscore the trade’s fast progress (see chart). In the primary half of 2025, the worldwide semiconductor market reached  $346 billion (€293 billion) — a rise of 18.9% in contrast with the earlier 12 months.

Overall, WSTS forecasts 22% progress for 2025, bringing the market to $772 billion. For 2026, it expects a good sharper rise of greater than 25%, pushing the market to $975 billion.

By how a lot smartphone costs might enhance has been examined in a examine by the market analysis agency IDC (International Data Corporation).

“In a moderate scenario, average smartphone selling prices could rise by 3 to 5%,” the examine states. “In a pessimistic scenario, they could increase by as much as 8%.”

Experts warn of a turning level. The age of low cost, plentiful reminiscence and storage is ending. In 2026, expertise is about to develop into costlier — not as a result of demand is booming, however as a result of provide cannot sustain.

Samsung: Smartphones will develop into costlier

In late January, Samsung Electronics President Wonjin Lee introduced potential worth will increase in an interview with Bloomberg.

“Prices are going up,” Lee mentioned, including: “Obviously, we do not want to convey that burden to the consumers. But we’re going to be at a point where we have to actually consider repricing our products.”

Apple, in the meantime, has not publicly commented on potential worth will increase. However, analysts at funding financial institution Morgan Stanley predict of their 2026 outlook that the corporate will doubtless maintain costs for its base mannequin steady at a excessive stage, whereas doubtlessly charging extra for gadgets with bigger storage capacities.

More reminiscence, larger prices for smartphones

The use — and price — of reminiscence chips in smartphone manufacturing has risen sharply over the previous 5 years. According to trade information, reminiscence accounted for round 8% of whole part prices in a tool such because the iPhone 12 Pro Max in 2020.

By September 2025, that share had climbed to roughly 10% within the iPhone 17 Pro Max. Due to the continuing rise in reminiscence chip costs, analysts at analysis agency Counterpoint Research estimate that this share might even enhance to as a lot as 20%.

German market stagnates

In mild of the present chip shortages, Germany’s digital trade affiliation Bitkom expects a interval of stagnation — or perhaps a slight decline — within the home market.

“Consumer demand in Germany is generally rather weak at the moment,” Sebastian Klöß, Head of Markets and Technologies at Germany’s digital affiliation, Bitkom, advised DW.

Still, trade revenues proceed to publish regular — albeit modest — progress. However, that is largely resulting from repeatedly rising gadget costs. According to a Bitkom examine, the common worth of a brand new smartphone in Germany elevated from €591 ($704) in 2024 to €605 ($720) final 12 months.

Refurbished smartphones are the winners

In distinction to sluggish demand for brand new gadgets, the marketplace for used smartphones is experiencing sturdy progress.

According to a joint evaluation by market analysis agency NIQthe Society for Consumer Electronics (GFU), and IFA Management, refurbished smartphones reached a 9% market share within the EU in July. In January 2025, the determine had been simply 5%.

“In some markets, refurbished models now account for more than 40% of online sales in the sub-€600 segment,” the evaluation states. “Refurbished devices are evolving from a niche product into an established force in the market.”

This piece was initially printed in German.