Samsung's semiconductor unit and its smartphone division have agreed to continue mobile DRAM supplies on a quarterly basis rather than locking in annual prices, according to industry sources close to SE Daily. The Device Solutions (DS) team has set baseline volume commitments for next year, aiming to prevent shortages before the launch of Samsung's Galaxy S26 series. However, this agreement comes with a downside. The three-month pricing windows expose the Mobile Experience (MX) group to market volatility, especially as memory costs are rising. Samsung is not exempting even its own divisions from the fluctuations in DRAM and NAND prices.

Examining the figures, the situation appears challenging for the DS. Mobile DRAM prices have more than doubled, with 12 GB LPDDR5X modules reaching around $70 in late November, up from about $33 in January. Processors, already the most significant expense in any smartphone, have increased by 25.5% compared to the previous year, raising the DX division's Q3 procurement bill to 10.9 trillion Korean won from 8.7 trillion won. Together, processor and memory now account for about 35% of the total device cost, a 5% increase from historical levels, putting pressure on the MX team. This tension reflects an internal shift, as the DS Division seeks higher profits from HBM for AI accelerators, reallocating wafers and resources away from standard mobile chips. Buyers who signed longer DRAM contracts earlier might regret it if spot prices continue to rise.