SEOUL, April 8 (AJP)-Samsung Electronics and other South Korean device makers are raising prices across smartphones, laptops and tablets as a sharp surge in memory costs — driven by artificial intelligence demand — squeezes margins and reshapes the consumer electronics market.
Samsung this week lifted prices for key products including laptops and tablets, with some models rising by as much as 900,000 won ($600). The company also raised official prices of several smartphones months after launch — an unusual move that underscores the severity of component cost pressures.
The top-end Galaxy Book6 Ultra with RTX 5070 rose from 4.93 million won to 5.83 million won, while the RTX 5060 model climbed from 4.63 million won to 5.53 million won — both up by 900,000 won.
The models had already launched in January at prices significantly higher than their Galaxy Book5 predecessors, but were raised again as memory costs accelerated.
Samsung also increased prices for the base Galaxy Book6 just a week after its release, lifting launch prices — originally set between 1.6 million won and 2.51 million won depending on specifications — by between 170,000 won and 880,000 won.
Tablet prices were also adjusted upward. The Galaxy Tab S11 Ultra, along with mid-range and budget models in the FE and A series, saw increases ranging from 30,000 won to 150,000 won. The price bump-up came after the company which also produces memory along with devices estimated a record-breaking operating profit of 57 trillion won ($39 billion) for the first quarter due to the spike in chip value.
The retail price hikes reflect a broader shift in the global memory market, where supply is increasingly being diverted away from consumer devices toward AI infrastructure.
Samsung’s decision to raise prices on existing smartphone models highlights the scale of the pressure. Such post-launch price hikes are rare in the industry, where prices typically decline over time. The move suggests manufacturers are no longer able to absorb rising component costs.
Other Korean electronics and appliance makers are also expected to follow, as memory inflation feeds into broader hardware pricing.
Market tracker TrendForce expects conventional DRAM contract prices to rise 58 to 63 percent quarter on quarter in the second quarter, while NAND Flash prices are projected to jump 70 to 75 percent.
“DRAM suppliers are reallocating capacity toward HBM and server applications, while overall supply remains tight,” TrendForce said.
The price surge is being driven by an aggressive buildout of AI data centers, particularly in North America, where cloud providers are securing memory supply through long-term agreements. TrendForce noted that suppliers are prioritizing server-grade memory due to higher profitability, leaving less capacity for consumer-grade products.
“Suppliers continue prioritizing server DRAM… while near-term supply remains tight,” it said, adding that meaningful capacity expansion is unlikely before late 2027.
The shift is hitting Korean manufacturers directly. Memory accounts for roughly 20 percent of smartphone production costs, making devices highly sensitive to DRAM and NAND price swings.
As supply tightens — particularly for lower-capacity chips used in consumer products — manufacturers are increasingly forced to pass costs on to consumers. TrendForce said major suppliers are gradually pulling back from the consumer DRAM segment, worsening shortages.
Worse, the outlook points to continued upward pressure.
In NAND, demand from AI servers and enterprise storage remains strong, while consumer demand is weakening under higher prices — a dynamic that reinforces supply tightness.
TrendForce said enterprise SSD demand tied to generative AI is accelerating, with cloud providers willing to pay premiums to secure supply.
The impact is expected to extend into upcoming product cycles. New flagship smartphones and foldables set for release later this year as result are likely to carry higher price tags.
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