DRAM Price Surge Slows OLED Investment
A forecast has emerged that the surge in DRAM prices caused by supply shortages is increasing the cost burden on smartphone manufacturers, which will also affect the display industry’s investments in new technologies. This is as the rise in memory prices leads to smartphone price hikes and a contrac
The surge in DRAM prices, which have risen about 3.5 times compared to the same period last year, is causing smartphone manufacturers to face a significant cost burden. This price increase is leading to higher smartphone prices, which in turn is causing a contraction in demand. As a result, market research firm Counterpoint Research has reported that Samsung Display and LG Display are delaying or scaling back investments in new 6th generation display technologies for smartphones.
These delays are due to the rise in memory prices for AI data centers, which has also raised component procurement costs for smartphone manufacturers. The pressure from these rising costs is restructuring the timing of the introduction of new display technologies, with mainstream bar-type smartphones having already seen their retail prices rise by at least $100 in the United States.
This has left little room for further price increases, and as a result, smartphone manufacturers may need to adjust display specifications or raise product prices to defend profitability. This shift in strategy may weaken the incentive for panel makers to invest in new technologies, as they pursue the expansion of next-generation technologies and production lines while maintaining their existing mobile OLED production bases.
Brief written by urgent.news from BusinessKorea's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
