Apple might be a trillion-dollar titan, but it too isn’t immune to the DRAM shortage, and with its long-term agreements with Samsung and SK hynix said to expire at the beginning of next year, the company had to act fast to avoid any price hikes. According to the latest report, the Cupertino firm has secured a partnership with Samsung and, in the process, made the latter its largest DRAM supplier, accounting for 60-70 percent of shipments that will not just be found in the existing iPhone 17 series, but also in next year’s iPhone 18 family.
Despite Apple’s preference for having more than one supplier to exercise better pricing leverage, Samsung is likely the only one that can manufacture DRAM based on the iPhone maker’s requirements
Various iPhones feature DRAM chips from Samsung, SK hynix, and Micron, but future releases might only show one supplier’s name for the majority of shipments, at least, according to the Korea Economic Daily. Despite SK hynix holding a healthy position in Apple’s supply chain, the company is said to be concentrating its production capacity on high-bandwidth memory (HBM), with Samsung previously reported to have shifted its focus from HBM to DDR5 to maximize profits.
With the iPhone 18 series launching in the third quarter next year and rumored to ship with six-channel LPDDR5X memory for increased bandwidth and AI performance, Samsung appears to be the only manufacturer that can maintain both volume and quality for its most lucrative customer. The report also suggests that ‘Apple specifications’ for DRAM are extremely strict and go beyond JEDEC’s standards.
Furthermore, chipsets like the A19, A19 Pro, and next year’s A20 and A20 Pro do not allow for momentary voltage spikes. Samsung’s 12GB LPDDR5X chips are only 0.65mm in thickness, making them one of the thinnest components to be found in mobile devices, and with their thermal resistance improved by 21.2 percent and power consumption reduced by 25 percent, Apple wouldn’t have had a second thought in picking an alternate supplier thanks to the aforementioned attributes.
For Samsung, the current DRAM shortage is estimated to contribute to the company’s annual operating profit of $73 billion for 2026, as the price of each 12GB LPDDR5X RAM chip has increased from $30 at the beginning of the year to $70. Apple might be able to absorb these costs by placing a hefty order for both its iPhone 17 and iPhone 18 models, while also saving on chip expenses thanks to mass producing its own A-series of SoCs and C2 5G modem.
News Source: Korea Economic Daily
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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