Samsung has secured a 100% price increase from Apple for LPDDR5X memory chips used in the iPhone 17 lineup. The agreement was finalized during an emergency meeting between the two companies to secure supply for the first half of 2026.
The deal highlights a severe global DRAM shortage that has shifted bargaining power to chip suppliers. Apple’s acceptance of the price hike demonstrates the extreme measures smartphone manufacturers are taking to secure critical components.
According to Korean outlet DealSite, Samsung originally targeted a 60% price increase but proposed 100% as an opening bid. Apple accepted the higher figure immediately without negotiation. A semiconductor industry insider stated that the move shows how far smartphone companies are willing to go to secure memory inventory. Apple shifted from semi-annual to quarterly memory price negotiations due to market volatility.
The price of a 12GB LPDDR5X module has climbed from roughly $25 in early 2025 to around $70. TrendForce expects conventional DRAM contract prices to rise 90% to 95% in the first quarter of 2026 compared with the prior quarter. The shortage stems from chipmakers reallocating manufacturing capacity to high-bandwidth memory for AI servers.
SK Hynix disclosed on February 20 that its DRAM and NAND inventories have fallen to approximately four weeks. The company stated that all of its HBM capacity for 2026 is sold out. SK Hynix is expected to supply roughly two-thirds of Nvidia’s HBM4 demand and maintains a commanding lead in the HBM market share overall. Samsung reclaimed the global DRAM market lead from SK Hynix after a year.
Apple CEO Tim Cook stated that rising memory prices had a “minimal impact” on the December quarter but would weigh more on margins in the months ahead. Analyst Ming-Chi Kuo stated Apple’s strategy is to absorb higher component costs rather than pass them to consumers. Apple aims to keep iPhone 18 starting prices flat while recouping margins through services revenue.
Samsung’s mobile division is sourcing LPDDR5X for the Galaxy S26 from both its own semiconductor arm and Micron in a roughly 50/50 split. Samsung plans to use its in-house Exynos 2600 processor in roughly 30% of Galaxy S26 units to reduce reliance on Qualcomm’s more expensive Snapdragon chips. Samsung is expected to hold U.S. Galaxy S26 base pricing steady at $799, though higher-storage models may see increases of up to 20%.
IDC forecasts a record 13% decline for the 2026 global smartphone market, with a modest 2% recovery in 2027. Ben Wood of CCS Insight stated the memory chip deficit will continue well into 2027, mainly due to the rapid growth of AI infrastructure. Apple reportedly secured DRAM supply only through mid-2026, leaving second-half pricing uncertain.
Samsung’s semiconductor division originally aimed for a 60% price increase but floated a 100% increase as an opening bid. The deal was first reported by DealSite on February 26. Samsung’s in-house Exynos 2600, fabricated on a 2nm process, is priced $20 to $30 below Qualcomm’s Snapdragon 8 Elite Gen 5.
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