Commenting on the latest ASML quarterly results, James Bull, technology industry senior analyst, RSM UK said: “ASML reported revenues of €11.7bn for the third quarter, in line with market expectations and up 55% on the same period last year. The company raised its full year guidance for the third consecutive quarter and guided Q4 revenues of up to €15.2bn. For investors, ASML’s results are good news, but they also point to continued pressure on the cost of the advanced chips used in smartphones, laptops and other consumer technology.

“The consequences are already visible across the consumer electronics industry. Apple increased prices on its Mac and iPad range by between 15% and 25% in June, describing the memory cost increases as unlike anything it had seen before. In September, the iPhone 18 Pro launched at $1,199 higher than its predecessor with Apple citing the same memory pressures, Samsung raised prices across its entire Galaxy S26 range by $100 in August, and Google recently increased the price of its Pixel 10a smartphone by $100, both for the same reason.

“The chip shortage is showing no signs of easing either. ASML makes the only machines capable of printing the world's most advanced chips which take up to three years from order to producing chips. The company said today that even its planned capacity expansion for 2027 and 2028 will not fully be able to meet customer demand.

“For UK households, the timing is difficult; energy bills are forecast to rise a further 25% in January and the Bank of England expects inflation to rise notably above 4% early next year. The Budget is two weeks away and the IMF has warned the Chancellor to use cost of living support sparingly or risk reigniting inflation. A continued structural squeeze on consumer technology prices with no short-term signs of easing, driven by forces entirely outside of UK policy control, adds even more pressure at an already difficult time.”

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