Apple has agreed to pay Samsung double for LPDDR5X memory chips used in iPhone 17 production, per a Korean report. The 12GB modules, previously priced at ~$30, now cost $70—a 100% markup Samsung initially demanded. This surge reflects worsening global shortages as chipmakers prioritize AI server HBM production, leaving mobile DRAM scarce. Samsung reportedly used the aggressive pricing tactic during emergency negotiations with Apple, which reportedly accepted it immediately, highlighting desperation to secure supplies.

The Galaxy S26 faces similar pressures, with Samsung and Micron planning steep hikes for LPDDR5X chips. To offset costs, Samsung may use its Exynos 2600 processor in 30% of units. Apple analyst Ming-Chi Kuo predicts iPhone 18 Pro prices will remain flat despite rising expenses, while CEO Tim Cook acknowledged chip costs will impact margins but expects 13-16% revenue growth.

This price hike underscores broader industry shifts: Samsung’s semiconductor division now holds significant leverage over Apple, a rare reversal of their long-standing supplier relationship. The move also signals Apple’s willingness to absorb higher costs to avoid production delays, even as competitors like Samsung navigate dual challenges of supply constraints and component redesigns.

Key entities: Apple, Samsung, LPDDR5X, Exynos 2600. Critical figures: 100% price increase, $70 per module. Context: AI-driven HBM demand, Galaxy S26 production adjustments, and Apple’s margin resilience strategy.