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Samsung Weighs Price Hikes for Budget Galaxy Phones as AI Memory Boom Lifts DRAM Costs

AI-fueled demand for HBM is diverting wafer capacity from phone memory, pushing manufacturers to shift higher costs onto consumers.

Overview

  • South Korean outlet Hankyung reports Samsung is evaluating price increases for Galaxy A and M models to offset rising memory costs, with Galaxy S devices largely unaffected for now.
  • Surging HBM orders for AI servers are pulling wafer capacity from standard DRAM and LPDDR supplies, tightening availability for phones and PCs.
  • TrendForce now projects general DRAM prices to climb 18–23% by the end of 2025, with elevated costs likely to persist well into 2026.
  • Samsung is ramping advanced DRAM production, though new lines are at least a year out and unlikely to ease near-term shortages.
  • Industry pricing has already jumped as Samsung and SK Hynix lifted DRAM and NAND module quotes by up to 30%, while big customers lock in long-term contracts and smaller buyers face partial fulfillment.