Apple sends executives to Korea to secure 3-year DRAM deals with Samsung and SK Hynix as prices surge, protecting iPhone 17/18 supply and limiting build costs.
© A. Krivonosov
Apple is taking unusual steps to shield itself from a mounting DRAM shortage. South Korean outlets report that senior executives have begun booking extended hotel stays near Samsung and SK Hynix manufacturing hubs, aiming to personally hammer out supply agreements lasting up to three years.
The stakes are higher because Apple’s previous long-term memory deals are rumored to run out this month. With a global squeeze under way, component prices have spiked: a 12 GB LPDDR5X chip now costs the company about $70, roughly 230% more than in early 2025. Samsung remains a key DRAM supplier for the upcoming iPhone 17 and iPhone 18 lines, but even that pipeline needs fresh volume guarantees.
Korea Economic Daily notes that Apple is not alone: representatives from Google and Dell have been making similar trips to South Korea, a wave that has already lifted hotel demand in the area. Memory vendors are effectively choosing the most financially solid customers, yet even for them, prices keep climbing, with contract DRAM rates in the current quarter potentially increasing by another 50%.
Analysts say the shortage could lift smartphone build costs by around 25%, a squeeze that typically trims shipments. Apple, however, looks better placed than rivals thanks to tight control of its supply chain and heavy use of its own chips. That gives the company room to maneuver and, at least for now, to cushion the blow instead of passing the full surge on to buyers. Even so, sustained hikes of this magnitude tend to test any operation; locking in multi-year volumes feels less like a hedge and more like a necessity.