A recent change to Samsung’s inventory pricing is beginning to hit manufacturers. Samsung has increased the cost of DRAM, reportedly due to stockpiling brought on by looming tariffs. The change will likely have adverse effects on end products, like Android devices.
Samsung’s components often find themselves throughout the smartphone and tech industry. These individual parts and pieces aren’t limited to the company’s own products, rather, they’re common enough that iPhone and Google use them in proprietary releases.
According to a report from ETNews, Samsung has increased the price of both its DDR5 and DDR4 DRAM inventory by a significant margin. The change appeared in a new contract with customers listing the increased price. Where DDR4 DRAM went up by 20%, DDR5 DRAM went up by 5%.
The increase is expected to be because of the domino effect brought on by an expectation of tariffs. Companies are looking to stockpile goods ahead of the import tax implementation, saving them from a large loss in profit. That stockpiling has increased demand on Samsung, who has, in turn, decided to implement a price increase on components.
This is the first time Samsung has increased the price of its DRAM memory in some time, meaning the price has remained reasonably low. That would likely contribute to current demand as device makers are looking to build phones at a lower cost.
Samsung is a large name in the industry, and an increase like this can set the tone for other manufacturers. Increasing the price of DRAM may have a rippling effect throughout other component manufacturers. The increase may also trickle down into the end product – your phone.
When the parts that make up devices increase in price, phone makers have to increase the price of the device itself to justify the cost of the parts. That increased price is, of course, passed on to the consumer. That isn’t to say this is the nail in the coffin, and your Galaxy S26 is going to be $3,000. However, it could mean we start to see more increases across the industry due to a demand surge.
More on Samsung:
- Samsung’s biggest One UI 7 mistake had nothing to do with the delays
- Samsung Galaxy Watch 8 is ditching a fully circular design, leaked images suggest
- Samsung Wallet adds ‘Tap to Transfer’ feature that works with physical cards too
Add 9to5Google to your Google News feed.
FTC: We use income earning auto affiliate links. More.
