Apple Accepts Samsung's 100% Price Increase Plan to Secure Stable Supply of LPDDR5X Memory

IT House, February 26 — According to foreign media Wccftech on February 25, local time, even with one of the strongest supply chains in the world, Apple still cannot completely avoid the impact of DRAM shortages. Previously, it was reported that to secure sufficient LPDDR5X memory supplies, Apple executives have even stayed in South Korea for extended periods, engaging in intensive negotiations with Samsung.

Although the initial supply has been secured, the cost has far exceeded expectations — Apple paid a price significantly higher than Samsung’s original plan, with a premium of over 60%. However, as a trillion-dollar tech company, Apple has the capacity to bear higher costs. Whether these costs will be passed on to consumers remains uncertain.

Currently, memory prices are rising dramatically. In early 2025, the price of 12GB LPDDR5X chips is about $25 to $29 (IT House note: approximately 171.8 to 199.3 RMB at current exchange rates), but by the end of the year, it has surged to $70 (approximately 481 RMB). Korean media Dealsite reported that Apple ultimately accepted Samsung’s proposed 100% price increase. Samsung initially aimed for a 60% increase but proposed a higher increase early in negotiations to leave room for bargaining, and Apple ultimately accepted the higher price.

This situation indicates that Apple faces significant pressure to secure memory supplies, while other manufacturers may be in even more difficult circumstances. However, Apple still has a key advantage — its services business provides strong financial support, offsetting the impact of rising hardware costs.

Tianfeng International Securities analyst Guo Mingchi pointed out that Apple is likely to absorb the cost increase for the iPhone 18 itself in exchange for shipment growth during turbulent market times. In the first quarter of fiscal year 2026, Apple’s services business generated $30.013 billion in revenue, surpassing the total revenue of most tech companies and becoming a major profit source for the company.

The services business has become a stable revenue pillar for Apple, especially playing a crucial role during fluctuations in hardware sales cycles. However, the iPhone 18 series is still considered likely to see price increases, with the final retail price to be announced officially.