Tech inflation: apple, playstation, and the silent price hike
The relentless creep of cost continues to strangle the tech market, leaving consumers facing sticker shock on everything from iPhones to PlayStation 5s. It’s a trend driven by more than just inflation – a deliberate strategy by major players to maintain profit margins.
A decade of rising costs
Over the past decade, the price of established tech has steadily climbed. A 2016 iPhone 7, once retailing for $769, now commands a hefty $959 for a base 256GB model in 2026. We’re talking about a sustained upward pressure, mirroring, and arguably outpacing, broader economic inflation. And it’s not just Apple. Nearly 190,000 electronics firms – many teetering on the brink of closure due to persistent RAM shortages – are grappling with this reality, a brutal fight for survival.
The iPhone X, released in 2017 with a base 64GB configuration, marked the first time a device crossed the $1,000 threshold. Since then, Apple has consistently raised prices – with the notable exception of the ‘SE’ model, their budget offering. But the pressure isn’t limited to Cupertino. The entire industry is participating in this escalating cost game.
But why this persistent increase? It’s not simply about the passage of time or the rising cost of materials. The market logic dictates that technological advancements should drive down prices, fostering wider adoption. Yet, the opposite is occurring.
Consider the democratization of displays. A 55-inch 4K television that once commanded over $1,000 a decade ago now routinely sells for around $300. This shift has been a key driver of accessibility. However, smartphones, computers, and consoles haven’t followed suit. The PlayStation 5 Pro, for example, launched at over $799 – a move that largely failed to resonate with the gaming community.
Even SSDs, facing a crisis fueled by the burgeoning demand for AI infrastructure, have implemented price reductions to broaden their market reach. This isn't purely a consequence of geopolitical instability or consumer willingness to pay premium prices for established brands. It’s a complex interplay of factors, including market competition – Apple faces stiff competition from Android – and the strategic positioning of Sony, virtually unchallenged since the decline of Xbox.
The net result: a continuous rise in prices, a trend likely to intensify as component shortages and global conflicts persist. And this isn’t a minor adjustment; it's a fundamental reshaping of the consumer tech landscape – one where the pursuit of profit consistently overshadows the promise of accessibility.”n