Introduction: Rising Costs in the Smartphone Market
The upcoming flagship smartphones are set to become noticeably more expensive for consumers. This trend is primarily attributed to the skyrocketing costs of memory chips and semiconductors. Both Google and Apple are bracing for significant price adjustments, reshaping their product strategies.
Soaring Memory Costs
The pressure on pricing is primarily coming from the RAM market. In 2025, the cost per gigabyte of RAM was around €2.60; by 2026, it’s projected to be nearly €11—an increase of more than four times. Investment bank Morgan Stanley has described this escalation as unprecedented. In response, Google is making a strategic shift: the baseline version with 128 GB of storage will be eliminated, making 256 GB the new entry-level standard.
Google Pixel 11: Higher Prices, Enhanced Features
Shakil Barkat, Google’s Vice President, has confirmed the increased entry prices for the Pixel 11 series, scheduled for launch on August 12, 2026. Leaked price points suggest the following starting prices in Europe:
- Pixel 11: €999
- Pixel 11 Pro: €1,199
- Pixel 11 Pro XL: €1,399
- Pixel 11 Pro Fold: starting from €1,899
In the United States, the base model is expected to start at $899. A central feature of the series is the Tensor G6, one of the first smartphones chips manufactured using a 2-nanometer process. Technologically, the Pro model boasts a 6.3-inch OLED display with a 144 Hz refresh rate and a triple-camera setup featuring a 48-megapixel periscope telephoto lens.
To mitigate the rising RAM costs, developers are working on a leaner version of Android to ensure the operating system runs efficiently with less memory.
Apple’s Strategic Negotiations
Apple is also gearing up for the expected launch of the iPhone 18 Pro models in September 2026, with a standard iPhone 18 slated for the first quarter of 2027. To counterbalance the increased memory costs, Apple is aggressively negotiating better prices for other components.
Whether iPhone or Android, users must make the most of their existing devices, especially with rising prices for new flagship models. Understanding technical jargon is essential. For those looking to familiarize themselves, a free dictionary covering the 53 most important Apple terms is available.
Projecting Price Increases for Apple Products
Reports indicate that Apple is aiming for a price of around €62 per OLED panel, significantly lower than the previous generation. However, this savings may not suffice, as market researchers from IDC predict price hikes of $100 to $200. Consequently, the iPhone 18 Pro could launch in the U.S. at $1,299, with the Pro Max starting at $1,399.
To finance this shift, Apple is set to launch a new leasing program in collaboration with Klarna on July 28, 2026. The new A20 Pro chip will also be produced using the 2-nanometer process, promising either 30% more performance or 25% to 30% greater efficiency. The Pro models will be equipped with 12 GB of RAM for AI functionalities, a variable aperture main camera, and a streamlined Dynamic Island.
The Major Leap to 2 Nanometers
Both Google and Apple are leveraging this new chip generation. The transition from 3 to 2 nanometers not only enhances computing power but also marks advancements in battery technology. The iPhone 18 Pro Max is expected to come with a 5,567 mAh battery, providing a 9.4% increase in capacity.
With the Pixel 11, Google will introduce a new notification feature called Pixel Glow, available in color options like Midnight Haze, Pine, and Dune. Apple counters with Dark Cherry and Light Blue for its Pro models.
This shift is unsurprising: Alphabet, Google’s parent company, reported a staggering Q2 2026 revenue of approximately €112 billion, marking a 24% increase from the previous year. Both the cloud and hardware sectors are thriving, perfectly aligning with the Pixel 11 launch.
