Earlier this month, a report suggested that Samsung would become the primary supplier of 12GB RAM for the upcoming iPhone 17 Pro models. It looks like Samsung has recently been experiencing high demand for its DRAM chips from clients. Now there’s chatter that the Korean firm has increased its DRAM prices, which could help the company secure more profits in the coming months.
Samsung increases DRAM prices by 20%
According to a report from Korean outlet ETNews, Samsung has finalized a DRAM supply price increase plan with major customers early this month. The price increased about 20% for DDR4 DRAM and around 5% for DDR5 DRAM, though exact rates vary by customer. The report adds that the company has also signed a DRAM supply contract with a customer at an increased price.
Samsung recently lost its market share in the DRAM business for the first time — its rival SK Hynix is now the global leader in this space. Amid all this, Samsung’s decision to increase the price for DRAM is quite surprising, as it can lose orders from clients, potentially decreasing the market share. But there’s a different view in the industry — strong demand led Samsung to increase the price.
Due to the uncertainty of the Trump administration’s reciprocal tariffs, Samsung has reportedly seen higher demand from PC, mobile, and server makers. These companies are placing larger orders in advance to avoid higher costs from the upcoming reciprocal tariffs.
So, this is a good opportunity for Samsung as it not only helps increase DRAM market share but also helps earn more profit. During the Q1 earnings call, Kim Jae-joon, Vice President of Samsung’s Memory Business Division, said, “Due to concerns about changes in global tariffs, pre-builds (advance inventory stockpiling) of sets (finished products) have expanded, and customer parts inventories have been depleted faster than initially expected.”
With Samsung raising DRAM prices for the first time this year, it will be interesting to see how this price hike will impact Samsung’s long-term strategy in the DRAM market.
