We all should get ready to pay more for our next smartphone purchase, as their prices are going to increase soon. This is primarily because of the rising memory costs and their ripple effect in the tech industry. Samsung has reportedly imposed steep price hikes on several DDR5 memory modules due to overwhelming demand from AI data centers.
Samsung hikes prices of its memory due to high demand
According to Reuters, Samsung has sharply increased the prices of multiple DDR5 modules between September and November. Some configurations’ prices jumped as much as 60%. This marks one of the steepest short-term price hikes in recent times. One distributor has reported that Samsung hiked the price of its 32GB DDR5 module from $139 to $239. The price of the 16GB and 128GB modules was also hiked by about 50%.
The main reason behind the price hike is said to be the supply pressure created by the AI boom. Data and training centers are buying memory chips in huge quantities and are even paying a premium to secure inventory. The panic-buying has led to a sharp increase in demand, and manufacturers are not yet able to match their production to the demand. This has led to a sharp price increase on the component.
The ripple effect has already reached the smartphone industry
Since the high-end smartphones rely on the same memory, the ripple effect has already reached major smartphone brands. Xiaomi recently raised the launch pricing of its Redmi K90 lineup. The company’s president, Lu Weibing, publicly confirmed that the sharp increase in memory costs directly pushed retail prices higher.
Xiaomi also warns of future price hikes if the shortage continues. Known tipster Digital Chat Station has also warned of a price increase of up to 20% to 30% YoY on flagship smartphones. Devices utilizing the LPDDR5X RAM would be affected the most. Since the price increase directly affects the memory, a key component, the manufacturers don’t have any choice other than to increase the prices.
The post Samsung's 60% RAM Price Hike Will Soon Hit Your Next Smartphone appeared first on Android Headlines.
Samsung’s 60% RAM Price Hike Will Soon Hit Your Next Smartphone
