It’s not just Samsung, Tim Cook warns higher prices are unavoidable

Samsung recently increased its phone and tablet prices in the USA, and there is little reason to believe things will return to normal anytime soon. Higher prices could become the new reality for consumer electronics, and future Galaxy devices may cost even more.

Samsung isn't alone. The entire industry is feeling the pressure. In a recent interview with The Wall Street Journal, Apple CEO Tim Cook said that “unfortunately, price increases are unavoidable,” highlighting the same challenges Samsung and other device makers are facing.

For anyone wondering why phones, tablets, game consoles, and other electronics are becoming more expensive, the answer lies in a combination of supply and demand, as well as a lopsided focus from the industry on AI data center memory solutions over consumer memory products.

The explosive growth of AI data centers has created unprecedented demand for DRAM memory. Server operators are buying massive quantities of high-performance memory for AI workloads, tightening supply across the industry and pushing prices higher.

According to Cook, Apple is working to absorb as much of these rising prices as possible to shield customers from price increases. However, he admitted that “the situation has become unsustainable.”

Apple is expected to unveil new iPhone models later this year, including its first foldable device, and many analysts expect higher prices across at least part of the lineup.

Samsung faces the same market conditions. And although it also manufactures memory components, it is not immune to broader industry trends. As a result, upcoming Galaxy devices could launch at higher prices than consumers have become accustomed to.

Whether prices stabilize in the coming years remains uncertain. During the WSJ interview, Cook stressed that “we definitely need memory pricing and supply to return to reasonable levels for consumer products. That's the bottom line.”

Unfortunately for consumers, that outcome may still be some distance away. Industry observers expect NAND flash prices to begin easing in 2027 as supply improves, but DRAM remains the bigger concern.

Current forecasts suggest DRAM prices could continue rising through the rest of this year and well into next year, prolonging the cost pressures facing consumer electronics.