Tech inflation: how apple and sony are raising the bar – and why it matters
The relentless march of price increases in the tech sector has become a near-constant frustration for consumers. From smartphones to consoles, the cost of keeping up with the latest gadgets continues to climb, pushing many into difficult choices.
A decade of rising costs
Over the past decade, a disturbing trend has emerged: manufacturers, particularly Apple and Sony, are systematically increasing prices year after year. Comparing the initial launch prices of iconic devices – the iPhone 7 in 2016 costing £769, and the iPhone 17 in 2026 projected at £959 for a 256GB model – reveals a consistent upward trajectory mirroring inflation, but often exceeding it. This isn't simply about the passage of time; it’s a deliberate strategy.
A staggering 190,000 electronics firms face imminent closure due to a critical shortage of RAM, highlighting the fragility of the supply chain and the pressures on smaller manufacturers. The iPhone X, released in 2017, marked the first time an iPhone surpassed the £1,000 barrier – a model with a relatively modest 64GB of storage. Since then, Apple has steadfastly raised prices, with the exception of the ‘SE’ model, their ‘affordable’ offering. But this isn’t just an Apple problem; the entire industry is experiencing the same dynamic.
The paradox of technological advancement
The prevailing economic theory suggests that technological advancements should drive prices down, fostering wider adoption. Yet, the reality is far more complex. Screens, ironically, have become increasingly accessible, democratizing access to high-resolution displays and innovative technologies across a broader price range. A 55-inch 4K television that once commanded over £1,000 a decade ago now routinely sells for around £300 – a dramatic shift. However, this trend hasn’t translated to mobile devices, computers, or consoles, where prices continue to escalate.
Sony’s playstation puzzle
Take Sony’s PlayStation 5, for instance. The PS4 Pro launched at £399, while the PS5 Pro is already priced above £799 – a figure that hasn’t resonated with the gaming community. Even solid-state drives (SSDs), vital for modern computing and now experiencing a crisis fuelled by AI data centers, have reduced their prices to improve accessibility. But consumer willingness to pay, influenced by brand loyalty and perceived value, remains a significant factor. Apple, with its dominant market share in mobile, benefits from this dynamic, and Sony, with the PS5, appears to face no serious competition.
This confluence of geopolitical tensions, component shortages, and consumer demand creates a volatile environment for pricing decisions. Ultimately, the continued rise in tech costs isn’t inevitable; it’s a calculated move by Apple and Sony to maintain profit margins, a strategy that could further exacerbate the squeeze on consumer budgets.