Apple Faces Pressure as Samsung Hikes DRAM Prices by 80%

The AI industry's insatiable demand for memory chips has triggered a DRAM price surge that's set to make new tech in 2026 significantly more expensive. This development means consumers will likely pay even more for new devices, and even the world's largest smartphone manufacturer – Apple – will have to absorb these increased costs.

According to industry sources in South Korea, Samsung has raised its LPDDR DRAM chip pricing by a substantial 80% compared to what it was charging Apple in Q4 2025. The situation is even more severe with SK Hynix, the other major DRAM manufacturer, which has reportedly increased its DRAM pricing by a staggering 100%.

Historically, Apple has been able to mitigate component price hikes through long-term agreements with key suppliers. However, this time appears different. A new report indicates that Apple has signed a deal with Samsung that will only cover DRAM unit prices for the first half of the year. This short-term arrangement almost certainly means that the upcoming iPhone 18 series and other new Apple devices will arrive with higher price tags.

The DRAM price surge is directly linked to the AI industry's growing appetite for memory chips. As artificial intelligence applications become more sophisticated and widespread, they require increasingly powerful hardware with substantial memory capacity. This has created unprecedented demand for high-performance DRAM chips, driving prices upward across the entire industry.

Despite these challenges, there may be some hope for consumers. Analyst Ming-Chi Kuo remains confident that Apple will absorb the rising component costs to keep iPhone pricing stable, as the company aims to increase its market share. This strategy would align with Apple's historical approach of using pricing as a competitive tool, though the magnitude of these price increases may test the company's ability to maintain current price points.

The impact of these price hikes extends beyond just Apple. The entire consumer electronics industry relies heavily on DRAM components, and similar price increases will likely affect everything from laptops and tablets to gaming consoles and smart home devices. This could mark the beginning of a broader trend where technology products become more expensive across the board, potentially slowing upgrade cycles and affecting consumer purchasing decisions.

For Apple specifically, this situation creates a delicate balancing act. The company must decide whether to pass these increased costs to consumers, potentially affecting sales and market share, or absorb them and accept reduced profit margins. Given Apple's premium positioning and the intense competition in the smartphone market, this decision will be crucial for the company's strategy in 2026 and beyond.

The timing is particularly challenging as Apple prepares to launch its iPhone 18 series, which is expected to feature significant AI capabilities. These AI features will likely require even more DRAM than previous models, making the price increases even more impactful on Apple's cost structure.

As the situation develops, consumers and industry watchers alike will be closely monitoring how Apple and other tech giants navigate these unprecedented DRAM price increases and what this means for the future of consumer electronics pricing.