The benefits of artificial intelligence (AI) may come at a high cost for consumers. Surging demand for memory chips is pushing up the price of 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. “According to analyses by the World Semiconductor Trade Statistics (WSTS) institute, prices for these chips rose by 50% last year.” He warned that consumers could face longer delivery times and higher device prices, and noted the chip shortage caused more than €102 billion ($121 billion) in economic damage in Germany between 2021 and 2023.
WSTS data underscore rapid industry growth. In the first half of 2025 the global semiconductor market reached $346 billion (€293 billion), up 18.9% year-on-year. WSTS forecasts 22% growth for 2025, bringing the market to $772 billion, and expects an even sharper rise of more than 25% in 2026, pushing the market to $975 billion.
A study by market researcher IDC examined how smartphone prices could respond. In a moderate scenario, average smartphone selling prices could rise by 3–5%; in a pessimistic scenario they could increase by as much as 8%. Experts say this signals a turning point: the era of cheap, plentiful memory and storage is ending. In 2026 technology may become more expensive not solely because demand is booming, but because supply cannot keep up.
Industry executives have signaled possible price changes. Samsung Electronics President Wonjin Lee told Bloomberg, “Prices are going up,” and acknowledged the company may need to consider repricing products despite not wanting to pass the burden to consumers. Apple has not publicly commented on potential price increases; however, analysts at Morgan Stanley predict Apple will likely keep base-model prices high while charging more for larger storage options.
Memory’s share of smartphone component costs has risen sharply. Industry data show memory accounted for about 8% of component costs in an iPhone 12 Pro Max in 2020; by September 2025 that share was roughly 10% in the iPhone 17 Pro Max. Counterpoint Research analysts estimate that, if memory chip prices continue rising, that share could reach as much as 20%.
Domestically in Germany, Bitkom, the digital industry association, expects stagnation or a slight decline in the market amid weak consumer demand. Industry revenues show modest growth largely driven by rising device prices: the average price of a new smartphone in Germany rose from €591 ($704) in 2024 to €605 ($720) in 2025.
One clear effect is the boost to the refurbished smartphone 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 account for more than 40% of online sales in the sub-€600 segment, suggesting used devices are evolving from a niche product into an established market force.
This piece was originally published in German.