A global memory shortage driven by AI demand has forced Apple to accept a 100 percent price increase on Samsung RAM modules, paying roughly double what it did just months ago for critical iPhone components.
Apple reportedly agreed to pay Samsung twice as much for LPDDR5X memory chips needed for ongoing iPhone 17 production, according to Korean outlet Dealsite. The company accepted the doubled price immediately during emergency supply negotiations earlier this month, even though Samsung had initially planned to push for only a 60 percent increase.
The 12GB LPDDR5X modules used in current iPhone Air and iPhone 17 Pro models have already roughly doubled in price since early 2025, rising from around $30 to approximately $70 per unit. Samsung opened with the full markup as a negotiating tactic, expecting pushback that never came from Apple's procurement team.
Separate reports indicate Apple has also agreed to pay about $100 more per unit for next-generation LPDDR6 RAM destined for future iPhones and iPads. The newer standard offers higher bandwidth and improved power efficiency but requires more advanced fabrication processes that are still maturing at Samsung's Pyeongtaek facilities in South Korea.
Chipmakers like SK Hynix and Micron have been redirecting production capacity toward high-bandwidth memory for AI servers, creating severe shortages in mobile DRAM markets. Even Samsung's own mobile division faces supply constraints, with initial Galaxy S26 production using a fifty-fifty split of LPDDR5X from both Samsung's semiconductor division and Micron.
Samsung is expected to raise Galaxy S26 pricing partly in response to these cost increases while attempting to offset expenses by using its in-house Exynos 2600 chip in roughly 30 percent of units. The company controls an estimated 40 percent of the global DRAM market and reported record quarterly revenue from its semiconductor division recently.
For Apple, which ships hundreds of millions of iPhones annually, a $100 increase on a single component represents significant margin pressure. The company's bill of materials for flagship iPhones has historically ranged between $400 and $550 depending on model and storage configuration.
Despite these cost pressures, Apple analyst Ming-Chi Kuo recently said the company plans to keep iPhone 18 Pro starting prices flat. CEO Tim Cook acknowledged on an earnings call that rising chip prices would have "a bit more of an impact" on gross margins while projecting year-on-year revenue growth of 13 to 16 percent this quarter.
Apple's immediate acceptance of Samsung's terms highlights how critical memory supply has become as smartphone makers race to support increasingly demanding on-device AI features. Running large language model inference locally requires not just powerful neural engines but also fast, high-capacity RAM to hold model weights and process data in real time.
