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Samsung Electronics' Device Solutions (DS) division plans to raise prices for DRAM and NAND memory used in smartphones by 7% to 10%. The company has already started negotiations with Chinese smartphone manufacturers. Samsung also intends to approach Apple for price discussions in the fourth quarter of the year, between October and December. Even Samsung’s own smartphone division, which operates separately from the DS division, will be affected by these price increases.
Apple is a significant buyer in the smartphone memory market. Analysts estimate that Apple purchases twice as much NAND memory for its smartphones as Samsung and three times as much as Xiaomi. This large purchasing volume gives Apple considerable negotiating power. However, Samsung is expected to push for higher prices with all clients, including Apple, despite the potential for tough negotiations.
Chinese smartphone makers are the first to face these new price discussions. Samsung is already in talks with them to implement the proposed increases. The company’s strategy reflects a broader trend in the memory market, where suppliers are prioritizing high-margin products.
Samsung, along with competitors SK Hynix and Micron, is making substantial profits from high-margin memory products such as High Bandwidth Memory (HBM) and server DRAM. As a result, memory manufacturers are focusing production on these high-performance types rather than on LPDDR memory, which is commonly used in smartphones. This shift in production priorities has contributed to rising prices for smartphone memory components.
Since last year, the prices of DRAM and NAND memory have increased significantly. Industry analysts expect these prices to continue rising, though at a slower rate than before. The cost of memory components for smartphones, such as an 8GB RAM and 256GB storage combination or a 12GB RAM and 512GB storage configuration, has become a key concern for device makers. These figures represent only the cost of RAM and storage, not the total cost of the device.
Industry forecasts suggest elevated DRAM and NAND prices will persist through at least the first half of 2027. This extended period of high memory costs is likely to pressure smartphone manufacturing budgets and could eventually be passed on to consumers through higher retail prices.
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