Apple has reportedly accepted Samsung Electronics' proposal to increase memory semiconductor prices in the first quarter of 2027. Prices for DRAM and NAND flash memory used in smartphones are expected to rise by 30-40% compared to the third quarter of this year, leading to increased cost pressures for smartphone manufacturers.
According to the Chinese economic media outlet Jiemian, citing industry sources, Samsung has proposed a price of nearly $2 per gigabit for DRAM and about $0.33 for NAND flash. These figures represent a 30-40% increase from the prices in the third quarter of this year.
As one of the largest smartphone manufacturers globally, Apple’s acceptance of these prices suggests that memory costs may continue to rise in the future.
One of the main reasons for the increase in memory prices is the rapid growth of the artificial intelligence (AI) industry. The swift expansion of AI data centers has led to a surge in demand for high-bandwidth memory (HBM) and server DRAM. Consequently, major memory manufacturers like Samsung, SK Hynix, and Micron in the U.S. are focusing their production capacity on AI and server products, resulting in a relative decrease in the supply of memory for smartphones.
Market research firm Omdia forecasts that Samsung's NAND wafer production will decline from 4.9 million units last year to 4.68 million units this year, while SK Hynix's production is expected to drop from about 1.9 million units to 1.7 million units. Kioxia also plans to reduce its production from 4.8 million units to 4.69 million units.
As memory supply tightens, Apple is facing increased cost pressures. According to market research firm TrendForce, the memory cost for the 256GB iPhone 18 Pro in the third quarter of this year has increased approximately fourfold compared to the same period last year. The share of memory in the overall component cost has also risen significantly, from about 10% to 34%.
Apple previously stated that it has never seen component prices rise so dramatically and quickly. Following the unveiling of new products on September 9, Apple raised the price of the iPhone 18 Pro in China by 1,000 yuan (approximately $140). Prices for existing models, including the iPhone Air and iPhone 17, were also increased by up to 2,300 yuan. Apple cited the rise in memory semiconductor prices as one of the reasons for these price hikes.
With Apple accepting Samsung's high memory prices, Chinese smartphone manufacturers are likely to face increased burdens as well. Given that Apple purchases memory in large quantities, it has stronger negotiating power than other companies. However, if Apple has accepted these prices, it may become more challenging for Chinese smartphone manufacturers like Oppo and Vivo to demand lower prices.
* This article has been translated by AI.
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