Apple has reportedly agreed to pay twice as much for Samsung’s LPDDR5X memory chips as it ramps up production of the iPhone 17 series, a move that highlights how tight the global mobile DRAM market has become and how urgently smartphone makers are trying to secure supply before costs rise even further.
The 12GB LPDDR5X modules used in the iPhone Air and iPhone 17 Pro have already jumped sharply in price this year, climbing from around $30 in early 2025 to nearly $70, which puts direct pressure on hardware margins even as flagship phones continue to demand higher memory configurations to support advanced features and on-device AI tasks.
According to Dealsite, Apple recently held emergency meetings with Samsung’s semiconductor division to negotiate first-half delivery volumes, and during those talks, Samsung reportedly opened with a 100% price increase as a negotiation tactic, even though it had initially planned to push for a 60% hike.
“Initially, Samsung Electronics’ DS division set a strategy with the goal of raising the price of LPDDR5X for Apple’s iPhone by about 60%.”
— Semiconductor industry official
Dealsite’s sources claim Apple accepted the doubled price immediately, which underlines how critical it has become for major brands to lock down supply in a market where memory makers are shifting production toward high-bandwidth memory for AI servers, leaving mobile DRAM in short supply.
Supply Crunch Hits Samsung Too
The squeeze does not spare Samsung’s own mobile business, as the Galaxy S26 reportedly uses a 50-50 split of LPDDR5X from Samsung’s DS division and Micron for its initial production batch, with both suppliers planning further price increases after the first round of deliveries.
An industry insider familiar with Samsung’s internal discussions said the MX division prioritized volume security ahead of the Galaxy S26 launch, even as component costs climbed across the board.
“Samsung Electronics’ MX division is producing the Galaxy S26 series with 50% of the DS division and Micron’s LPDDR5X each in the initial volume.”
— Industry official
Samsung is expected to raise Galaxy S26 prices and offset part of the cost by using its Exynos 2600 chip in roughly 30% of units, although sources say the rise in memory pricing remains steep.
Despite this cost pressure, Apple analyst Ming Chi Kuo recently said Apple still plans to keep iPhone 18 Pro starting prices flat, while CEO Tim Cook acknowledged on an earnings call that higher chip prices will have “a bit more of an impact” on gross margins even as the company projects solid revenue growth this quarter.
