Core Viewpoint - The price of DDR5 memory is continuously rising, driven by increasing demand in the artificial intelligence sector, with prices in the Korean market reaching up to $500 for a single memory stick and even higher for entry-level kits [1][2]. Group 1: Memory Price Trends - In the Korean market, a 16GB DDR5-5600 memory stick is priced around 270-300 USD, while a 32GB DDR5-5600 kit ranges from 450-500 USD [1]. - Entry-level memory kits supporting Intel XMP and AMD EXPO are priced between 500 to 650 USD, significantly higher than a few months ago when similar kits could be purchased for much less [2]. - The U.S. market is expected to see a significant price increase, with an average rise of 30% anticipated within a month, aligning with industry expectations [2]. Group 2: Impact on Smartphone Manufacturing - The BOM cost for smartphones is projected to increase by 25% by 2026 due to skyrocketing DRAM prices, with mobile LPDDR RAM prices rising over 70% and NAND flash prices doubling [5]. - Memory costs have risen from 10-15% of total smartphone manufacturing costs to 20%, impacting manufacturers who may need to reduce specifications or pass costs onto consumers [6][7]. - Major companies, including Apple, are facing challenges due to DRAM shortages, with reports of executives negotiating directly with manufacturers to secure supplies [5][7]. Group 3: Long-term Outlook - The memory shortage is expected to persist until at least Q4 2027, indicating a prolonged period of high prices and supply constraints [7].

Core Insights - The ongoing global DRAM supply chain shortage is significantly testing Apple's cost control capabilities, with the price of 12GB LPDDR5X memory chips for the iPhone 17 Pro series soaring from $25-29 in early 2025 to over $70, representing a 230% increase [1][3] Group 1: Price Surge and Supply Chain Challenges - The price of 12GB LPDDR5X memory for the iPhone 17 Pro has increased by over 230%, from initial contracts of $25-29 to current prices exceeding $70 [3][5] - Apple is reportedly preparing various measures to address the recent surge in memory prices, having secured a significant amount of supply in advance compared to major manufacturers [2][4] Group 2: Contract Expiry and Future Implications - Apple faces potential risks from expiring supply chain contracts, with long-term DRAM supply agreements with major suppliers Samsung and SK Hynix set to end in January 2026 [5] - Samsung currently accounts for approximately 60% to 70% of Apple's DRAM chip shipments, making it challenging for Apple to find alternative suppliers in the short term [5] Group 3: Impact on Future Products - The cost crisis is particularly concerning for the upcoming iPhone 18 series, which is expected to enter mass production in February 2026 and will utilize advanced "six-channel LPDDR5X memory" to enhance bandwidth and AI performance [5][6] - If chip procurement costs remain high at $70, Apple may be forced to increase the prices of new devices to offset costs, making effective response strategies a priority [5][6] Group 4: Strategic Responses and Industry Outlook - Apple plans to reduce reliance on external suppliers by using its self-developed A20 series chips and C2 5G modems in flagship models, which could help mitigate some of the financial impact from rising memory chip prices [6] - The DRAM shortage is expected to persist until the fourth quarter of 2027, potentially affecting Android manufacturers more severely, as they may have to compromise on memory specifications or reintroduce lower-memory models [6]

Core Viewpoint - The article highlights the significant price increase in the memory market, particularly in South Korea, driven by global DRAM shortages and the AI boom, with specific examples of price surges for DDR5 memory products [1][4]. Group 1: Price Trends - A specific DDR5-5600 16GB memory module from Samsung has seen its price rise over three times in the past three months, from 69,246 KRW in August to an average of 208,090 KRW currently, with some retail prices reaching 216,500 KRW [3]. - The price of high-end 32GB DDR5 memory kits has drastically changed, where previously 148 USD could purchase a full set, now it only buys a single standard memory stick at 5600 MT/s, indicating a significant drop in value for money [4]. Group 2: Market Impact - The DRAM supply shortage is affecting not only desktop and laptop memory but has also spread throughout the entire hardware supply chain, leading to price increases across various hardware products, including mini PCs, branded systems, and graphics cards [4].