According to a report by the Korean media outlet Dealsite, Apple has agreed to a massive price increase for memory chips from Samsung. Specifically, this concerns LPDDR5X RAM modules, which are needed for the ongoing production of the iPhone 17. The report states that Apple accepted a doubling of the prices. This decision demonstrates how tight the mobile DRAM market has become – and how much pressure even large corporations like Apple can face.
Memory chips are a key component of modern smartphones. Especially in high-end models like the iPhone 17 Pro or the iPhone Air, powerful 12GB LPDDR5X modules are used. They are crucial for multitasking, AI functions, and overall system performance.
Apple is typically known as a tough negotiator with strong market power over suppliers. It is therefore all the more remarkable that, according to industry sources, the company apparently accepted a price increase of this magnitude without much of a dispute. This is due to a structural shortage of memory supplies worldwide.
Emergency talks between Apple and Samsung
According to Dealsite's sources, Apple recently held emergency talks with Samsung's semiconductor division. The aim was to renegotiate the supply volumes for RAM modules for the first half of this year.
The focus is on 12GB LPDDR5X modules, which are used in the iPhone Air and the iPhone 17 Pro. The price trend since the beginning of 2025 is significant:
- At the beginning of 2025, the price per module was around 30 US dollars.
- It is now at around 70 US dollars.
This means the prices have almost doubled.
According to reports, Samsung originally planned a 60 percent price increase for the LPDDR5X modules it supplied to Apple. Instead, the company is said to have strategically entered negotiations demanding a 100 percent increase. Apple apparently agreed to this doubling immediately. Industry observers interpret this as a sign of how urgently smartphone manufacturers currently need to secure memory supplies.
Cause: Switch to AI storage
The shortage of mobile DRAM was not primarily caused by rising smartphone demand. A decisive factor is the increasing focus of memory manufacturers on high-bandwidth memory (HBM).
Companies like SK Hynix and Micron have increasingly shifted their production capacities to HBM. This storage technology is primarily needed for AI servers in data centers.
This strategic shift has reduced the available capacity for traditional mobile DRAM. Supply is decreasing while demand in the smartphone sector remains stable. The result is a drastic price increase for LPDDR5X modules.
Samsung itself is also affected
The shortage isn't just affecting Apple. According to the same report, the LPDDR5X memory for the first production batch of the Galaxy S26 will be sourced equally from Samsung's own semiconductor division and from Micron. Both suppliers are reportedly planning significant price increases after the first batch.
Samsung is expected to raise prices for the Galaxy S26 in some cases. At the same time, the company is trying to offset costs. Around 30 percent of the devices are expected to be equipped with the company's own Exynos 2600 chip to reduce expenses. This situation shows that even vertically integrated manufacturers like Samsung are not entirely immune to market disruptions.
Impact on Apple's margins and iPhone prices
Despite increasing cost pressures, Apple apparently has no plans to raise the starting price of the iPhone 18 Pro at present. This was recently stated by Apple analyst Ming-Chi Kuo.
Apple CEO Tim Cook also commented on the latest financial results during a conference call. He confirmed that rising chip prices would have a "somewhat stronger impact" on gross margins.
At the same time, Apple expects revenue growth of between 13 and 16 percent for the current quarter compared to the previous year. The strategy seems clear: market share and price stability in the premium segment are to take precedence over short-term margin optimization for the time being.
Apple accepts doubling of memory chip prices
Apple has reportedly agreed to a 100 percent price increase for Samsung LPDDR5X memory chips to secure production of the iPhone 17. Prices for 12GB modules have risen from around $30 to approximately $70 since the beginning of 2025.
The trigger is an industry-wide shift in memory production towards HBM for AI servers, which has led to a shortage of mobile DRAM. Samsung itself is also under pressure and is planning price adjustments for the Galaxy S26.
Whether Apple will absorb the additional costs itself in the long term or pass them on to consumers later remains to be seen. In the short term, however, the starting prices for the iPhone 18 Pro are expected to remain stable, while the company continues to anticipate significant revenue growth. (Image: Shutterstock / asharkyu)
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