Apple Increases Reliance on Samsung as RAM Prices Soar

Generally, I think Apple is really boosting its reliance on Samsung for iPhone memory because component prices are going up. Apparently, the tech giant is expanding the proportion of iPhone memory sourced from Samsung due to rapidly increasing memory prices, which is pretty significant. Normally, this shift is expected to result in Samsung supplying approximately 60% to 70% of the low-power DRAM used in the iPhone 17. Obviously, this is a big change from the more balanced distribution with SK Hynix in previous models. Usually, Micron also contributes as a smaller supplier, but it seems like they are not as involved this time.

Apple Turns to Samsung Amid Surging RAM Prices

Basically, the change comes amid a tightening supply in the global memory market, which is causing problems for Apple. Currently, the iPhone uses low-power double data rate memory (LPDDR), which is optimized for energy efficiency and thermal performance in mobile devices, so it’s a big deal. Interestingly, Samsung, SK Hynix, and Micron all produce LPDDR on a large scale, but industry sources indicate that SK Hynix and Micron have increasingly shifted their production capacity towards high-bandwidth memory (HBM). Consequently, their available capacity for mobile-focused LPDDR has become significantly constrained, which is a problem for Apple.

Shift in Supplier Share

Usually, I would think that Apple has a lot of options for suppliers, but it seems like Samsung is the only company that can meet their conditions. Apparently, Samsung has maintained substantial production of general-purpose and mobile DRAM, enabling it to meet Apple’s requirement for large and predictable volumes. Generally, Samsung is reportedly the only company capable of meeting Apple’s conditions, especially as SK Hynix appears to be focused on HBM, which is in high demand for artificial-intelligence accelerators and data-center hardware.

Global Memory Market Tightening

Normally, the global memory market is pretty stable, but it’s tightening up right now. Currently, the iPhone uses low-power double data rate memory (LPDDR), which is optimized for energy efficiency and thermal performance in mobile devices. Obviously, this is a big deal, and Apple needs to make sure they have a reliable supplier. Usually, Samsung, SK Hynix, and Micron all produce LPDDR on a large scale, but it seems like SK Hynix and Micron are shifting their production capacity towards high-bandwidth memory (HBM), which is in high demand for artificial-intelligence accelerators and data-center hardware.

Samsung’s Production Advantage

Basically, Samsung has a big advantage when it comes to production, which is why Apple is relying on them more. Apparently, Samsung has maintained substantial production of general-purpose and mobile DRAM, enabling it to meet Apple’s requirement for large and predictable volumes. Generally, this is a big deal, and it’s why Samsung is the only company that can meet Apple’s conditions, especially as SK Hynix appears to be focused on HBM.

Technical Sensitivities

Usually, Apple’s hardware is pretty robust, but it’s actually pretty sensitive to momentary voltage spikes, which is a problem. Currently, the latest chips, including the A19 and A19 Pro, are not well accommodated by momentary voltage spikes, which places additional pressure on memory suppliers to deliver components that perform consistently across large production runs. Obviously, this is a big deal, and Apple needs to make sure their suppliers can meet their standards.

Price Surge of LPDDR5X Modules

Generally, the price of a 12 GB LPDDR5X module, used in the iPhone Air and iPhone 17 Pro, has surged from around $30 at the beginning of 2025 to roughly $70 today, which is a big increase. Apparently, Apple’s scale and long-standing practice of negotiating multi-year supply agreements typically provide some insulation from short-term price volatility, but the magnitude of the increase has made supplier reliability and volume commitments more crucial. Usually, concentrating a larger share of orders with Samsung should allow Apple to secure more predictable deliveries and potentially benefit from economies of scale, even as overall component costs rise.

Implications for Apple

Normally, Apple is pretty good at managing their supply chain, but this time they are leaning more heavily on Samsung to stabilize their supply chain, mitigate the impact of volatile RAM prices, and maintain the performance standards expected of their flagship devices. Obviously, this strategic move underscores the growing importance of reliable DRAM partners in a market where memory costs and availability are increasingly unpredictable, which is a big deal for Apple. Usually, I think this is a good move for Apple, but it will be interesting to see how it plays out.