URGENT UPDATE: Samsung Electronics Co. is reportedly weighing a price increase for its upcoming Galaxy S26 smartphones as a significant global memory chip shortage escalates. This critical situation is unfolding amid soaring costs for DRAM, a vital component in smartphones, servers, and other technology.
The shortage has intensified as major producers, including Samsung and SK Hynix Inc., shift their production capacity towards high-bandwidth memory (HBM) chips, predominantly used in artificial intelligence applications. This strategic pivot has sharply reduced the availability of general-purpose DRAM chips, forcing smartphone manufacturers like Apple to scramble for long-term supply agreements that extend into 2027.
Research firm TrendForce has just revised its forecasts, indicating substantial price hikes for DRAM across all major segments in the fourth quarter of 2026. The firm’s latest analysis shows an alarming increase in mobile DRAM prices, which are expected to rise by an unprecedented 38-43% for LPDDR4 used in mid-range smartphones and 20-25% for LPDDR5 found in high-end models. These figures have drastically shifted from prior estimates of 18-23% and 20-25%, respectively.
Additionally, TrendForce has adjusted its projections for PC DRAM prices to reflect a 25-30% increase, up from an earlier 18-23%% prediction. The segment most affected by the supply crunch, server DRAM, is now forecasted to surge 28-33% in the same period.
The situation is further complicated as some chip suppliers have reportedly halted price quotes due to an overwhelming influx of orders from smartphone makers gearing up for new product launches early next year. This trend underscores the urgency of the current market dynamics and the potential implications for consumers.
As Samsung navigates this challenging landscape, the potential price hikes for the Galaxy S26 may have a direct impact on consumers looking to upgrade their devices. With the smartphone market already feeling the pressure from rising component costs, this development could lead to higher retail prices across the board, affecting millions of users worldwide.
Stay tuned for further updates on this developing situation as the tech industry reacts to these significant changes.
