The tech world has entered a new era where price hikes are the norm, and the latest from Apple serves as a stark reminder. The new iPhone 18 Pro and Pro Max start at $1,199 and $1,299, marking a $100 increase over their predecessors. Apple is not alone; the trend is widespread, with other major players like Google and Samsung also following suit. The Pixel 11 starts at $899, up from $799 last year, and the Galaxy Z Fold 8 Ultra launched at $2,099, $100 more than its predecessor.

The price hikes have hit even smaller brands, with Sony’s new Xperia 10 VIII costing £150 more and Moto Razr phones increasing by $100 each. Yet, the upgrades offered are often minimal, leading many to question whether the new models are worth the extra cost. Smartphone sales data suggests that the market for phones under $100 may soon disappear, a clear indication of the trend towards higher prices.

The price hikes are due to ongoing component shortages, driven by AI data center buildouts, that could last for years. Notably, RAM price hikes have been among the most severe, with CEO Carl Pei stating that memory costs for the Nothing Phone 4A had doubled by launch. Nearly every component that goes into new phones is becoming pricier, with Qualcomm, a key processor manufacturer, raising its chip prices earlier this month.

Apple’s delayed price hike and their late entry into the foldable market might indicate that both trends are here to stay. As consumers, we might find ourselves paying more for less, and the question is whether these higher prices will eventually be justified by the improvements in technology or if the tech industry will continue to put profit ahead of value.