Samsung Memory Price Hikes Could Pressure iPhone Margins

Samsung’s memory business is seeing solid profitability thanks to a global supply shortage and strong demand from the AI sector. The company has now reportedly increased memory chip prices for Apple for the first quarter of 2026. As such, the Cupertino giant may feel pressure on iPhone profit margins.

Samsung increases memory prices for Apple for Q1 2026

As you know, Apple sources LPDDR chips for its iPhones from key memory suppliers such as Samsung and SK Hynix. Last year, iPhone shipments were around 250 million units, so any increase in memory prices could significantly affect profit margins. In recent years, memory chip prices have continued to rise, with further increases in Q1 2026.

According to a report from ZDNET Korea, Samsung has proposed a price increase of over 80% compared to the previous quarter. Meanwhile, SK Hynix is also seeking a price hike of around 100%. As a result, Apple is likely to suffer further cost pressure from its memory suppliers.

There is also chatter that memory suppliers may implement additional price increases in the second half of the year. This timing will coincide with the launch of the iPhone 18 series, meaning Apple will either need to absorb the higher costs or pass them on to consumers through higher pricing.

“Higher memory costs will hit iPhone gross margins. But Apple’s playbook is clear: use the market chaos to their advantage — secure the chips, absorb the costs, and grab more market share. They’ll make it back later on the services side,” said TF International Securities analyst Ming-Chi Kuo.

It is worth mentioning that Apple usually pays lower memory prices than other companies. The main reason is its dominant market position and huge purchasing volume. As such, it has substantial negotiating power with suppliers like Samsung and SK Hynix. Meanwhile, Samsung Display is reportedly gearing up to supply next-gen LTPO+ OLED panels for the upcoming iPhone 18 Pro and iPhone 18 Pro Max.