The era of waiting for last year’s smartphone model to drop in price is effectively over. In a break from traditional market patterns, tech giants like Apple, Samsung, and Google have hiked prices across the board. Surprisingly, even devices already on the market—such as the iPhone 17—have seen price increases in the UAE, despite receiving no hardware updates. While new flagships are launching at significantly higher price points, budget and mid-range devices are suffering even more, with some entry-level models seeing cost surges exceeding 50 percent.

The primary culprit behind these hikes is the skyrocketing cost of memory. DRAM and NAND storage prices have surged by over 300 percent year-over-year, as chip manufacturers shift their production focus to high-bandwidth memory required for AI data centers. Because these AI-focused components consume more silicon and offer higher profit margins, ordinary smartphone memory has become scarce and expensive. Industry experts suggest this is a long-term supply constraint that will likely persist until at least 2028. Since history shows that manufacturers rarely lower retail prices even when component costs eventually decline, consumers should prepare for a new, permanent baseline for phone prices.