Samsung will supply 60-70% of memory chips for Apple's iPhone 17 and iPhone 18 series, according to industry reports from South Korea. The shift comes as Apple's traditional suppliers SK Hynix and Micron prioritize high-bandwidth memory for AI data centers over consumer-grade LPDDR chips.
Apple currently sources iPhone memory from multiple manufacturers but will now rely on Samsung for the majority of its DRAM needs. The Korea Economic Daily reports Samsung captured 60-70% of memory orders for iPhone 17 models, a significant increase from previous years when Apple split orders more evenly between Samsung and SK Hynix.
The global memory shortage, driven by explosive AI server demand, has pushed RAM prices up 100% for DDR5 modules. LPDDR5X memory used in high-end smartphones jumped from $30 to $70 per 12GB module earlier this year. Industry analysts project the shortage could persist until 2027-2028.
SK Hynix and Micron shifted production to high-bandwidth memory for AI accelerators and data center applications, including products for companies like NVIDIA. This reallocation left limited capacity for mobile RAM, forcing smartphone manufacturers to compete for remaining supply. Samsung remains one of few companies maintaining substantial LPDDR production.
Apple ships approximately 230 million iPhones annually and requires price stability with guaranteed supply secured 12-24 months in advance. Samsung's ability to meet Apple's stringent quality standards and volume requirements made it the logical choice amid the supply crunch.
Samsung's 12GB LPDDR5X modules measure 0.65mm thick, the thinnest available mobile DRAM. The chips offer 21.2% better thermal resistance than previous generations, crucial for Apple's vapor-cooled A19 Pro processor in iPhone 17 Pro models. Improved thermal performance helps prevent throttling during intensive AI tasks.
iPhone 17 Pro, Air, and Pro Max models feature 12GB of LPDDR5X RAM, the highest capacity in iPhone history. The increased memory supports on-device generative AI features Apple introduced earlier this year. iPhone 18, scheduled for 2026, will continue using Samsung memory according to supply agreements.
The memory shortage extends beyond smartphones to PCs and other consumer electronics. DDR4 and DDR5 prices tripled in the PC market, affecting Apple's Mac lineup and broader industry. Smaller manufacturers face even greater challenges securing components at reasonable prices.
Apple's increased dependence on Samsung represents a strategic reversal. During patent battles more than a decade ago, Apple deliberately reduced Samsung component usage. Market dynamics now force renewed partnership despite ongoing smartphone competition between the two companies.
Samsung benefits from the shortage through higher margins on memory sales. The company reportedly doubled DDR5 contract prices while maintaining production constraints. Even Samsung's own mobile division struggles to secure discounted internal supplies for Galaxy devices.
Apple maintains some supply diversification with 30-40% of memory orders still going to SK Hynix and Micron. This multi-supplier strategy provides backup options but offers limited protection against industry-wide shortages. Long-term agreements with Samsung help lock in pricing through 2026.
The memory crisis stems from AI's insatiable appetite for high-bandwidth memory. Data center operators pay premium prices for HBM chips, diverting semiconductor manufacturing capacity from consumer products. Memory makers prioritize higher-margin server components over mobile RAM.
Global inventory levels dropped to 2-4 weeks of supply, considered crisis levels in the semiconductor industry. Samsung reportedly fills only 70% of memory orders due to production constraints. The situation affects everything from smartphones to single-board computers like Raspberry Pi.
Apple's supply chain strategy faces its toughest test since pandemic-era chip shortages. The company weathered previous crises through massive purchasing power and diversified sourcing. Current memory shortages present different challenges with longer projected duration.
Industry analysts warn smartphone prices could increase 25% due to component cost inflation. Apple may absorb some increases to maintain premium brand positioning. Budget phone manufacturers face even steeper challenges passing costs to consumers.
The partnership highlights complex interdependencies in global electronics manufacturing. Competitors become essential suppliers when market forces shift production priorities. Apple's calculated risk depends on Samsung's continued reliability amid its own business pressures.
Memory market volatility reshapes competitive dynamics across the technology sector. Companies with secure supply agreements gain advantage over those exposed to spot market fluctuations. Apple's early deal with Samsung provides temporary stability in uncertain conditions.
