Smartphone RAM and Storage Could Get Even More Expensive

Samsung Electronics' semiconductor unit may hike prices for smartphone DRAM and NAND memory by 7% to 10%, according to Korean news outlet Sisa Journal. These memory components are utilized in manufacturing RAM and storage for smartphones and various other devices. Conversations with Chinese smartphone makers have already commenced, and Samsung is anticipated to seek revised pricing terms with Apple during the fourth quarter, spanning October to December.

Samsung's smartphone division is expected to bear the same price hikes, as its semiconductor DS division and device-centered DX division function independently. Apple could potentially wield substantial negotiating power, as reports suggest the company purchases approximately double the quantity of smartphone NAND compared to Samsung and thrice as much as Xiaomi.

The underlying issue revolves around memory manufacturers, comprising Samsung, SK Hynix, and Micron, experiencing heightened margins from products like HBM and server DRAM. Consequently, these firms are prioritizing higher-margin memory products over LPDDR memory extensively employed in smartphones. Market research firm Omdia indicates that DRAM and NAND prices have surged significantly since last year and are projected to remain elevated through the first half of 2027, although the rate of increases may decelerate.

Omdia's estimates foresee an 8GB + 256GB memory configuration escalating from $35 in Q3 2025 to an estimated $144 by Q4 2026. Such figures encompass solely the cost of RAM and storage components, implying that sustained price surges could exert additional strain on smartphone manufacturers' margins and retail pricing.