So, the rumors were spot on—Google’s new phones just got pricier, and it’s all because of those skyrocketing memory chip costs. On August 12th, Google officially unveiled the Pixel 11 lineup, which includes the Pixel 11, Pixel 11 Pro, Pixel 11 Pro XL, and the foldable Pixel 11 Pro Fold. Every single model carries a $100 higher starting price tag compared to its Pixel 10 counterpart from last year.
Here’s the breakdown: the standard Pixel 11 now starts at $899, the flagship Pixel 11 Pro XL kicks off at $1,299, and if you want the fancy foldable, the Pixel 11 Pro Fold will set you back a cool $1,899.
Now, before you get too upset, Google has a bit of a silver lining to point out. Since the base storage has been doubled from 128GB to 256GB, the Pixel 11 and Pixel 11 Pro are actually priced the same as last year’s 256GB versions of the Pixel 10 and Pixel 10 Pro. But here’s the catch—the entry-level Pixel 11 Pro XL (12GB/256GB) is $100 more than the Pixel 10 Pro XL with the same specs, and get this: the RAM has actually been cut down from 16GB to 12GB. Ouch.
According to the official word, the Pixel 11 series packs some serious camera upgrades, beefed-up durability, and runs on the new Google Tensor G6 chip, which is built to handle the latest Gemini Nano models right on the device.
Google isn’t alone in this boat, though. Apple, the other American tech giant, has also been forced to raise prices. Back on June 25th, Apple announced price increases on its Mac, iPad, and home devices, all thanks to the unprecedented memory chip and storage shortage triggered by the AI data center boom.
Let’s talk specifics: The MacBook Neo jumped from $599 to $699, the MacBook Air went from $1,099 to $1,299, the 14-inch entry-level MacBook Pro climbed from $1,699 to $1,999, the 11-inch iPad Pro shot up from $999 to $1,199, and the iPad Air rose from $599 to $749.That’s a price jump of over 20% for the 11-inch iPad Pro and iPad Air.
An Apple spokesperson explained, “The rapid expansion of AI data centers has caused an extraordinary surge in demand for memory and storage.” They admitted they’d “never seen component prices rise this fast and this much,” and said they’d been trying to absorb the cost increases for consumers, “but we’ve reached the point where we have to start raising prices.”
It’s worth noting that Apple’s latest round of price hikes didn’t touch the main iPhone lineup. But don’t get too comfortable—everyone’s expecting the upcoming iPhone 18 series to cost more. Apple is set to unveil its first-ever foldable phone at next month’s fall event, along with the iPhone 18 Pro and iPhone 18 Pro Max.
According to renowned tech journalist Mark Gurman, thanks to the memory chip and processor shortages, the foldable iPhone will likely start at a whopping $2,000 (about 13,507 RMB) or even higher. And just like the foldable, the iPhone 18 Pro is bracing for a price increase too. Gurman predicts iPhones could go up by $100 to $200 (roughly 675 to 1,350 RMB).
TrendForce’s latest smartphone industry research backs this up, pointing out that rising component costs, especially memory, are driving up the total cost of Apple’s upcoming iPhone 18 series. Taking the 256GB version’s BOM (Bill of Materials) as an example, costs are expected to jump about 38% year-over-year, which means retail prices are definitely going up. To avoid scaring off consumers, Apple might try to keep price increases in check by trimming its profit margins, hoping to hold onto market share.
Ever since the AI computing boom took off, data centers have been hogging memory chip production capacity, sparking a rare industry-wide price surge. DRAM supply, especially the LPDDR used in smartphones, has gotten seriously tight.
Industry data shows that in Q1 of this year,general-purpose DRAM contract prices jumped 93% to 98% quarter-over-quarter, while NAND flash climbed 55% to 60%. In Q2, DRAM went up another 58% to 63%, and NAND’s increase expanded to 70% to 75%. Spot market prices have actually risen way more than contract quotes—DDR5 16GB memory spot prices have surged over 600% this year alone.
Some research firms are even predicting this memory price surge could last until the end of 2027. For 2026, they expect the average smartphone price in China to rise 15% to 25%, which means more brands will likely follow suit with price hikes, especially for mid-range models and larger storage variants.
Richard Yu, Huawei’s Executive Director and Chairman of the Terminal BG, recently said at a Huawei launch event that memory prices are sky-high, and all phones will probably need significant price increases down the line—otherwise, they’d be selling at a loss.
These price hikes are already taking a toll on phone sales. According to preliminary data from Counterpoint Research’s smartphone market monitor, global smartphone shipments in Q2 2026 fell 11% year-over-year as the storage shortage worsened and became a major industry factor—marking the lowest second-quarter level since 2013.
The firm noted that DRAM and NAND prices kept climbing through the quarter because storage suppliers continue to prioritize AI data centers over consumer electronics. Smartphone OEMs have been passing those rising BOM costs onto consumers through multiple rounds of price increases, with entry-level and mid-range devices getting hit the hardest.
As for Chinese manufacturers, Xiaomi, OPPO, and vivo all posted double-digit year-over-year shipment declines in Q2, thanks to the market turbulence from rising storage costs. Counterpoint Research’s analysis suggests these three brands were especially hard-hit because they focus more heavily on price-sensitive entry-level and mid-range segments, where demand has been suppressed. Consumers are holding off on upgrades, snapping up older models, or simply stretching out their phone replacement cycles.
Huawei, on the other hand, was a bright spot in Q2, with shipments growing 6% year-over-year, largely driven by the Mate 80 series, Nova 15 series, and the newly launched Enjoy 90 series.
