Samsung Plans Price Hike for DRAM and NAND in Smartphone Production

In a move that could impact the smartphone industry significantly, Samsung Electronics is reportedly looking to increase the prices of DRAM and NAND chips by 7% to 10%. This decision comes as the demand for higher profit margins on specialized memory types remains strong.

According to Sisa Journal e, negotiations with Chinese smartphone manufacturers are already in progress, setting the stage for a broader industry impact. Apple, on the other hand, will return to discussions in the fourth quarter of 2023, making its own negotiations critical given its substantial purchase volume.

Apple's buying power is notable, as analysts indicate that it procures twice as much NAND for its handsets compared to Samsung, and three times more than Xiaomi. This dynamic positions Apple favorably in negotiations, especially as it navigates increased costs.

Despite the overall rise in memory prices, Samsung’s semiconductor division, alongside rivals SK Hynix and Micron, has been focusing on more profitable memory products, which has led to supply constraints for LPDDR variations that smartphones typically require.

As reported by market analysis firm Omdia, the costs for DRAM and NAND have surged over the past year and are expected to persist, albeit with a slowing increase. The following table details the projected costs for popular memory configurations, highlighting the financial strain on manufacturers.

-	8GB/256GB	12GB/512GB
Q3 2025	$35	$60
Q1 2026	$109	-
Q2 2026	$132	-
Q3 2026*	$140	$202
Q4 2026*	$144	$206
* estimates

Source (in Korean)