Samsung Electronics is pushing for another round of price increases for mobile DRAM and NAND flash chips, reportedly seeking an additional 7–10% rise as it renegotiates supply prices with Apple and other global smartphone manufacturers, a report out of South Korea says.
The move comes amid a broader memory crisis that has driven up prices for smartphones and other consumer electronics. Because Samsung is one of the few top memory suppliers and other vendors are also raising prices, those increases are being felt by consumers.
The report says Samsung’s mobile division does not receive preferential pricing from the semiconductor division. As a result, Samsung’s own Galaxy devices have seen price hikes, and the proposed increases would presumably apply to the company’s mobile unit as well.
Current chip price levels are already at record highs, and Samsung is set to renegotiate supply contracts with a view to secure an additional 7–10% increase over those levels.
Samsung’s role in the memory market
As one of the leading memory suppliers, Samsung’s pricing decisions have an outsized impact on device costs: when memory suppliers raise prices, smartphone and other consumer electronics prices rise accordingly.
Negotiations described in the report center on achieving the 7–10% hike on mobile DRAM and NAND flash chips supplied to Apple and other global smartphone manufacturers.
