Samsung Planned 60% Premium Pricing for LPDDR5X RAM, Apple’s Urgency Resulted in Increased Costs

How We Evaluate Rumors

0-20%: Unlikely – Lacks credible sources 21-40%: Questionable – Some concerns remain 41-60%: Plausible – Reasonable evidence 61-80%: Probable – Strong evidence 81-100%: Highly Likely – Multiple reliable sources

Rumor Assessment

55%

Plausible

Source 3/5

Corroboration 1/5

Technical 4/5

Timeline 3/5

Apple’s Strategies Amid DRAM Shortages

Despite having a strong and dependable supply chain, Apple is not immune to the global shortage of DRAM. Recent reports indicate that Apple executives have been securing long-term accommodations in South Korea to negotiate with Samsung for more supply. Although initial shipments of LPDDR5X memory appear secured, Apple incurred higher costs, paying significantly more than Samsung’s anticipated premium—an increase of 100% rather than a projected 60%.While Apple, as a tech giant valued over a trillion dollars, can absorb these costs, it remains unclear how these increases might impact consumers in the long run.

Drastic Price Hikes for LPDDR5X RAM

By early 2025, the pricing landscape for the 12GB LPDDR5X chips saw a dramatic surge. Apple and other tech companies faced prices skyrocketing from an estimated $25-$29 to around $70 by year’s end. Dealsite reports suggest Apple agreed to the 100% price hike initially proposed by Samsung, indicating the urgent need for DRAM supplies. Notably, Samsung aimed for a 60% increase but initiated talks with a higher rate, likely as a negotiating strategy.

Apple’s Competitive Edge

Given Apple’s considerable financial resources, such price hikes challenge other companies even more profoundly. However, Apple benefits from another crucial asset—the growth of its Services division. Analyst Ming-Chi Kuo of TF International Securities suggests that Apple might absorb the cost increase associated with the iPhone 18 to maintain a competitive edge in a fluctuating market. With services revenue reaching an impressive $30.013 billion in fiscal Q1 2026, Apple’s Services division has become a robust financial buffer, outpacing many tech firms.

What Lies Ahead for Apple’s Pricing Strategy

In summary, while the iPhone 18 series is expected to see an increase in price, Apple’s substantial Services revenue is likely to support its overall profitability amidst rising production costs. Nonetheless, the upcoming lineup may surprise consumers, so all eyes are on Apple’s next moves.

News Source: Dealsite

Source & Images