Samsung Reportedly Rejects DRAM Supply Request from Its Own Mobile Experience Division as It Prioritizes Profitability
As global DRAM prices continue to surge, internal tensions within Samsung are beginning to surface. According to a new report, Samsung’s Device Solutions division, often referred to as DS and responsible for semiconductor and memory production, has refused to supply its own Mobile Experience division with more than a year of DRAM for upcoming Galaxy smartphones. The decision is reportedly driven by DS’s strategic focus on maximizing profitability during the current memory shortage. This development may introduce volatility into the launch of the forthcoming Galaxy S26 series, raising concerns that the flagship lineup could see higher retail prices.
Industry insights shared by Sedaily reveal that Samsung had previously explored securing a long term DRAM contract for the Mobile Experience division that would guarantee memory supply for over twelve months. However, DS declined this arrangement and instead proposed renegotiating supply quantities roughly every three months. This shift means that Samsung’s smartphone division must now request DRAM allocations on a quarterly basis, navigating rising memory prices and ongoing supply uncertainty. The situation reportedly required intervention from high ranking Samsung executives to push negotiations forward.
Despite these efforts, the Mobile Experience team only succeeded in securing DRAM supply through the fourth quarter of this year. The decision comes at a time when the cost of twelve gigabyte LPDDR5X DRAM has climbed significantly. The price has increased to seventy United States dollars as of November, more than double the thirty three dollar price point seen at the beginning of the year. With DRAM demand overwhelmingly driven by high performance systems, data center growth, and artificial intelligence workloads, Samsung’s Device Solutions division is leveraging the market shortage to prioritize profit margins and strengthen its revenue position.
According to a senior industry researcher, Samsung’s operating profit is projected to reach sixty nine billion United States dollars in 2026. Rising DRAM and NAND prices, combined with improved yields for Samsung’s next generation two nanometer GAA process, are expected to contribute significantly to this recovery. Samsung also aims to bring its foundry division to profitability by 2027. To reach this goal, the company is reportedly making strategic trade offs, which now include limiting DRAM allocations to its own Mobile Experience team in favor of higher value customers and contracts.
The most immediate consequence is the potential for higher production costs for the Galaxy S26 lineup, which is scheduled for release in February 2026. Increased DRAM pricing could influence the device’s final retail price. However, Samsung’s flagship smartphones often receive notable discounts within a few months of launch, which may soften the long term impact on consumers.
This internal dynamic highlights the pressure Samsung faces as both a major smartphone vendor and one of the world’s largest memory suppliers. Balancing internal needs with external profit opportunities has become increasingly complex during the ongoing semiconductor supply constraints. As DRAM pricing continues to rise, these internal negotiations may become even more challenging in the months ahead.
Do you think Samsung should prioritize internal divisions like Mobile Experience during shortages, or is DS right to maximize profits by focusing on higher margin external customers
