The rise of artificial intelligence is boosting demand for memory chips — and that is starting to drive up prices for smartphones and computers, including 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), told DW. He cited World Semiconductor Trade Statistics (WSTS) analyses showing memory chip prices rose by 50% last year, and warned of longer delivery times and higher device prices. According to Weber, the chip shortage inflicted more than €102 billion ($121 billion) in economic damage on Germany between 2021 and 2023.
WSTS figures highlight rapid sector growth. In the first half of 2025 the global semiconductor market reached $346 billion (€293 billion), up 18.9% year-on-year. WSTS projects 22% growth for the full year 2025, taking the market to $772 billion, and expects an even sharper rise of more than 25% in 2026, lifting it toward $975 billion.
Market researcher IDC modeled how that pressure could affect phone prices. In a moderate scenario average smartphone selling prices would climb 3–5%; in a pessimistic scenario they could rise as much as 8%. Analysts say this may mark a turning point: the era of cheap, abundant memory and storage could be ending. By 2026, technology could cost more not just because demand is strong but because supply struggles to keep pace.
Industry leaders have signaled possible repricing. Samsung Electronics President Wonjin Lee told Bloomberg, “Prices are going up,” and said the company may need to consider raising prices even if it prefers not to pass costs to consumers. Apple has not publicly addressed potential increases; Morgan Stanley analysts expect Apple to keep base-model prices relatively high while charging more for larger storage options.
Memory’s share of smartphone component costs has risen noticeably. Data show memory accounted for about 8% of component costs in the iPhone 12 Pro Max in 2020; by September 2025 that share was roughly 10% in the iPhone 17 Pro Max. Counterpoint Research warns that if memory prices continue to climb, that share could grow to as much as 20%.
In Germany, the digital industry association Bitkom expects the market to stagnate or decline slightly amid weak consumer demand. Reported industry revenue gains so far have been modest and are largely driven by higher device prices: the average price of a new smartphone in Germany rose from €591 ($704) in 2024 to €605 ($720) in 2025.
One clear consequence is a boost to the refurbished-phone market. A joint analysis by NIQ, the Society for Consumer Electronics (GFU) and IFA Management found refurbished smartphones reached a 9% market share in the EU in July 2025, up from 5% in January 2024. In some markets refurbished models now make up more than 40% of online sales in the sub-€600 segment, indicating used devices are moving from niche to mainstream.
This article was originally published in German.