Claims of new price hike pressure on phones

It has been claimed that Samsung is conducting negotiations with manufacturers for price increases on memory components used in smartphones. According to reports from South Korea, the company's semiconductor division is targeting a price hike in the range of 7 to 10 percent for mobile DRAM and NAND memory.

It is stated that these negotiations have begun with Chinese phone manufacturers in the initial phase, while discussions with Apple may come to the agenda in the last quarter of the year. Considering the breadth of brands for which Samsung is a memory supplier, a potential increase could affect not only Samsung Galaxy models but also phones from different manufacturers.

RAM AND STORAGE COSTS MAY BE AFFECTED SIMULTANEOUSLY

The two types of memory in question have different functions in a phone. DRAM constitutes the RAM side, which provides fast access to data needed by the processor and open applications. NAND memory is used as the main component of the permanent storage area where photos, videos, applications, and other files are saved.

Therefore, a potential price increase does not mean cost pressure limited only to the RAM capacity of phones. The cost to the manufacturer of storage options such as 256 GB or 512 GB could also be affected by this process. However, the extent to which the impact will be reflected in the final retail price will depend on each brand's supply agreements, inventory status, and product strategy.

AI DEMAND IS TIGHTENING THE MEMORY MARKET

The background of the price pressure in the memory market also includes strong demand for artificial intelligence infrastructure. In Samsung's financial statements, it is stated that demand is expected to remain strong in the second half of 2026, particularly on the server side, due to the impact of artificial intelligence investments.

However, it may not be expected that the increase of up to 10 percent in memory prices will be reflected in phone prices as a hike of the same rate. Memory constitutes only a portion of a smartphone's total production cost. Manufacturers may absorb some of the cost, change campaign conditions, or establish a new price balance with different RAM and storage options.

News Source: 12punto