Samsung Raises DRAM 100%, Apple Accepts

On February 25, Samsung Electronics unveiled its annual flagship smartphones at the Galaxy Unpacked 2026 event in San Francisco, officially launching the Galaxy S26 series.

Pricing highlights: The base models Galaxy S26 and Galaxy S26+ start at $899 and $1,099 respectively, marking a $100 increase over last year due to rising memory chip costs. The Galaxy S26 Ultra remains at $1,299, unchanged from its predecessor. In China, the series starts at ¥6,999.

Despite Samsung's strong vertical integration, the Mobile Experience (MX) division faced challenges securing favorable pricing for memory chips amid global shortages and surging prices. Internally, the Device Solutions (DS) division, which handles semiconductor production, maintained high pricing terms and limited long-term agreements, prompting the MX division to source DRAM from Micron as a secondary channel.

Industry sources revealed that DS recently won a major negotiation to raise DRAM prices supplied to Apple by 100%, starting from a proposed 60% increase. This success strengthened DS's stance in internal pricing negotiations, making additional discounts to MX unlikely. To prioritize Apple contracts, DS replaced long-term supply agreements with quarterly contracts, maximizing profits.

As a result, for the initial Galaxy S26 production, roughly 50% of LPDDR5X memory chips came from Micron, with the remainder from Samsung DS. An insider noted, "MX is currently splitting initial Galaxy S26 production 50/50 between DS and Micron, and no single source is dominating yet."

With Micron also signaling price hikes, the MX division's profitability is expected to face continued pressure, contributing to the overall price increase for the Galaxy S26 series.