AI GPU Lineup’s Memory Usage Equivalent to 100-150 Million Smartphones, Causing $100-$150 Price Increases from Apple and Samsung

NVIDIA’s latest Vera Rubin GPUs are poised to consume a substantial portion of global memory resources in 2023, exacerbating an already tight market. This situation is likely to have significant implications for major smartphone manufacturers like Apple and Samsung, who may find it necessary to increase prices for their upcoming models in 2026. This projection stems from a recent analysis by KeyBanc, highlighting the growing challenges within the memory sector.

Impact of NVIDIA’s Vera Rubin AI GPUs on Global Memory Resources

With the introduction of AI-optimized features in their Vera Rubin GPUs, NVIDIA is set to intensify competition for memory in a market already facing shortages. These advanced GPUs are essential for AI query processing, which generates substantial temporary memory logs known as KV Cache. Presently, NVIDIA stores this data in high bandwidth memory (HBM) modules. However, they plan to launch a new system called Inference Memory Context Storage (ICMS), which will exclusively handle KV Cache, allowing for more efficient memory utilization.

According to KeyBanc, NVIDIA’s consumption of memory this year could be equivalent to that of 100 to 150 million smartphones—approximately 10% of the global smartphone market:

“NVIDIA’s (NVDA) latest Vera CPU utilizes 1.5TB of memory—up from Grace’s 512GB—implying that NVIDIA will require 20 billion gigabits (Gb) of memory this year. This consumption is equivalent to 100–150 million smartphones, or just under 10% of the total smartphone market.”

Smartphone Giants Apple and Samsung Face Memory Challenges

The memory crunch presents significant hurdles for industry leaders such as Apple and Samsung. Recent reports indicate that while Apple has secured access to NAND flash memory through early 2026, suppliers like KIOXIA are expected to raise prices substantially after long-term agreements are finalized, according to Morgan Stanley.

Moreover, Apple faces an even greater challenge with DRAM supplies, having previously benefited from favorable long-term contracts. Morgan Stanley predicts that Apple will experience a price increase exceeding 50% for DRAM resources through the first quarter of 2026.

In addition, Apple is currently dealing with disruptions in its supply chain. A report from Nikkei Asia reveals that the company is struggling to procure high-end glass fiber cloth, known as T-glass, which is crucial for electronic components. This material aids in heat dissipation and overall circuit reliability.

Apple primarily sources T-glass from Japan’s Nitto Boseki, but the soaring demand associated with AI applications has reportedly overstrained Nittobo’s supply capacity. Consequently, Apple has sought assistance from the Japanese government and is exploring alternative suppliers like Mitsubishi Gas Chemical, which also depends on Nittobo for T-glass. In the meantime, Apple is considering using a lower-quality variant of T-glass, necessitating extensive testing before any implementation.

Samsung’s DS division has recently raised the price of DRAM supplied to Samsung’s MX division by about 60–70%.They’re pushing such an absurd condition even on MX, which is part of the same family— so just imagine how much they’re raising prices for other companies. I think the…

— Jukan (@jukan05) January 11, 2026

Interestingly, even Samsung, a major memory manufacturer, is not shielded from the repercussions of rising prices and supply shortages. Reports indicate that Samsung’s DS division has increased the cost of DRAM for its MX mobile division by approximately 60 to 70%.This price hike has led Samsung to increase the anticipated costs of the Galaxy S26 series by $30 to $60 in select markets, including South Korea.

Considering that memory accounts for roughly 20% of a smartphone’s bill of materials (BOM), KeyBanc analysts suggest that both Samsung and Apple may need to raise the prices of their devices by $100 to $150, potentially dampening consumer demand.

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