Apple is intensifying its reliance on Samsung for iPhone memory amid soaring component prices. The tech giant is expected to source 60% to 70% of the low-power DRAM for the iPhone 17 from Samsung, a notable increase from previous generations where SK Hynix shared a more balanced supply role, alongside Micron as a smaller contributor. This shift comes as the global memory market faces tightening supply, with SK Hynix and Micron directing more production toward high-bandwidth memory for AI and data centers, leaving less capacity for mobile DRAM. In contrast, Samsung has maintained significant production of mobile DRAM, positioning itself as the only supplier capable of meeting Apple’s substantial and consistent volume demands. Apple’s latest chips, including the A19 and A19 Pro, require memory components that perform uniformly across large production runs, increasing pressure on suppliers. The price of a 12GB LPDDR5X module has surged from $30 in early 2025 to about $70, challenging Apple’s usual strategy of securing long-term supply agreements to mitigate price fluctuations. By concentrating orders with Samsung, Apple aims to ensure reliable deliveries and possibly gain from economies of scale, despite rising component costs.
Why Is Apple Increasing Its Dependence on Samsung for Memory?
