Samsung is contemplating a price increase for its Galaxy phones due to escalating memory production costs. The company faces a significant memory shortage, primarily because of the rising demand for high-bandwidth memory in AI servers, which requires more complex production processes. This shift has resulted in less capacity for standard DRAM production, impacting the availability and cost of memory for mobile devices.
While the price hike is expected to affect low to mid-range Galaxy A and M series phones, the flagship Galaxy S series might remain unaffected for now, although future price increases cannot be ruled out due to evolving AI hardware needs. Samsung’s internal DRAM prices have reportedly risen by up to 20%, influenced by tariffs and ongoing shortages.
The memory shortage is projected to last over two years, with Samsung working on expanding its advanced DRAM production capabilities, though this solution is still a year away from implementation.
