Apple was previously said to be renegotiating the terms of its memory component supply deal with Samsung.
iPhone 17 Pro Max (pictured) is powered by a 3nm A19 chip
The rapid adoption of AI has prompted memory component makers to shift their focus to supplying High Bandwidth Memory (HBM) sticks to the newly booming industry. Most AI firms, after developing LLM-based AI agents, have begun building data centres to primarily store the training data, while also providing processing power for generative models. This has resulted in a widespread DRAM and NAND shortage for other industries. Among the worst hit are the smartphone makers, who have been grappling to keep the prices of their devices in check. Now, Samsung and SK Hynix have reportedly managed to renegotiate their existing supply deals, under which Apple will have to acquire LPPDR RAM for iPhone models at significantly higher prices.
Citing industry sources, ZDNet Korea reports that the two South Korea-based memory component makers, SK Hynix and Samsung, have renegotiated the terms of their existing supply agreements with Apple. As per the new terms, the iPhone-maker will be acquiring LPDDR RAM sticks for its smartphones at significantly higher prices from the two tech firms. Samsung has reportedly increased the prices of its memory components by about 80 percent compared to the last quarter.
Meanwhile, SK Hynix is said to supply its LPDDR RAM sticks at a 100 percent premium, nearly doubling the prices from the last quarter. The report also highlighted that this might not be the end of cost increased for the Cupertino-based smartphone maker.
In the second half of 2026, the price of memory components could further increase, adding to the cost of manufacturing iPhone models and other Apple devices which use RAM sticks. This means that the rumoured iPhone 18 Pro series and iPhone Fold could feature costlier RAM sticks.
Last month, a tech blogger revealed that the price of the 12GB LPDDR5x RAM, which is found on the iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air, have increased by more than 230 percent. The RAM Apple sources from Samsung was earlier acquired at prices between $25 (about Rs. 2,200) and $29 (about Rs. 2,600) per unit. However, the same now reportedly costs $70 (roughly Rs. 6,300) per unit.
The report added that this has prompted Apple to expand its supplier base by exploring new supply agreements. However, the Cupertino tech giant has been unable to find more RAM suppliers. Hence, the iPhone-maker continued to negotiate new contract terms. The blogger further wrote that since Apple had initially acquired relatively large quantities of memory components, it is currently in a secure position.
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