{
  "id": 11483385,
  "title": "Facing the music: Apple, Samsung, and memory cost inflation",
  "url": "https://urgent.news/2026/10/02/facing-the-music-apple-samsung-and-memory-cost-inflation",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-02T10:48:00.000Z",
  "source": {
    "name": "Computerworld",
    "slug": "computerworld",
    "url": "https://www.computerworld.com/article/4230148/facing-the-music-apple-samsung-and-memory-cost-inflation.html"
  },
  "original_language": "en",
  "account": "Samsung users continue to grapple with the hefty price hikes on the Galaxy S26 series, with some models now surpassing the cost of similarly capable iPhones. This development is problematic for all parties involved, though it appears set to persist for a significant period due to a memory supply-demand imbalance, as warned by memory giant Micron. The AI-driven memory price hikes are exerting an inflationary strain across the entire industry. While businesses at all scales face challenges from rising fuel prices and energy costs, it's particularly disconcerting that the architects of this memory supply imbalance are warning of the existential threat posed by the technology they're creating. This situation makes the financial burden of costlier consumer electronics a harder pill to swallow.\n\nMorgan Stanley analyst Erik Woodring believes Apple is currently presenting the most promising product roadmap in years, yet he shares the consensus that margins will continue to be squeezed by escalating memory prices. Analysts are wondering if we've seen the last iPhone price hike. If not, Apple may once again be faced with the need to raise prices early next year when new memory cost increases hit. Thus far, Apple has handled these challenges adeptly. The recently announced iPhone price increases, while significant, were reportedly lower than anticipated. Apple appears to have targeted higher-end customers with larger storage needs, effectively applying its strategy to the wealthier and more resilient segments of its hard-won market demand.\n\nApple has also benefited from broader smartphone price hikes, as these have been particularly tough for smaller competitors. Low-budget smartphone vendors have faced intense price pressure, leading to necessary price increases that make Apple's entry-level iPhone 17e and second-user devices even more appealing. Samsung's latest price increases have now closed the price gap between its high-end 1TB Galaxy S26 Ultra and Apple's entry-level iPhone Duo, which costs $1,399. The Galaxy S26 Ultra now also surpasses the starting price of Apple's iPhone 18 Pro Max. In essence, iPhones may not be cheap, but the narrowing price difference has made Apple's devices highly attractive deals. This shift is already evident in China and India, where Apple continues to lead in the US market.\n\nThere's speculation that Apple may be using its cash reserves to meet these price bands, but given the company's promising expansion in services and accessories, this may prove less crucial. Apple Pay has just launched in India, and the company continues to expand its services portfolio with innovations like AppleCare One, Apple Upgrade, Apple Business, and Creator Studio. Apple is also expanding its accessory and smart home product families, eagerly anticipating a positive response from customers. While margins on Apple's flagship product may be squeezed, services and a focus on accessories could potentially drive revenue growth, albeit with some risk to the brand's identity.\n\nLooking ahead, memory prices, logistics costs, and ongoing moves toward tech sovereignty will continue to reshape the industry. Meanwhile, the world is poised to witness the endgame where Apple's bet on AI firms evolving into commodities will be tested. If successful, this could lead to economic savagery as investors realize billions already invested in not-yet-made data centers will not be recouped. These are indeed challenging times.",
  "summary": "Samsung users are still digesting big price increases on the Galaxy S26 series, particularly as they mean some models are now more expensive than equivalently capable iPhones. That’s bad news for everyone, of course, but this is unlikely to get any better for some time to come, with memory giant Micron warning that the memory supply/demand imbalance is going to stick around for at least another…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}