UPDATE: Samsung Electronics Co. is weighing a significant price hike for its anticipated Galaxy S26 smartphones due to soaring memory chip costs amidst a severe global shortage. This decision comes as supplies of DRAM, a critical component in smartphones and servers, have tightened sharply.
The situation has escalated as major producers, including Samsung and SK Hynix Inc., redirect their manufacturing capacity towards high-bandwidth memory (HBM) chips, primarily used in artificial intelligence applications. This shift has drastically reduced the availability of general-purpose DRAM chips, compelling Apple and other smartphone manufacturers to secure long-term supply agreements extending through 2027.
Research firm TrendForce has just revised its forecast, predicting a staggering 38-43% increase in prices for LPDDR4 chips used in mid-range smartphones and 20-25% for LPDDR5 chips embedded in high-end models during the fourth quarter. This marks a significant adjustment from their previous estimates of 18-23% and 20-25%, respectively.
Moreover, TrendForce has also raised its outlook for PC DRAM prices, now anticipating a 25-30% increase from an earlier estimate of 18-23%. Server DRAM, currently at the epicenter of the supply crisis, is expected to surge by 28-33%. The firm noted that some chip suppliers have temporarily halted price quotes due to an overwhelming influx of orders from smartphone makers gearing up for new product launches early next year.
As the market grapples with these price surges, the potential increase in Galaxy S26 prices could have immediate repercussions for consumers and tech enthusiasts alike. Buyers looking to upgrade to Samsung’s latest models may soon face higher costs, impacting purchasing decisions and market dynamics.
The urgency of this situation cannot be understated. With supply chains disrupted and demand for advanced memory chips skyrocketing, consumers will need to act swiftly if they want to secure a Galaxy S26 at current prices.
As we monitor this developing story, it’s clear that the tech industry is on the brink of significant change. Keep an eye on Samsung’s announcements in the coming weeks as they navigate this challenging landscape.
Stay tuned for further updates on the memory shortage and its impact on the smartphone market.
