"Memory prices quadrupled in a year"... Samsung and SK hynix set for earnings surge

According to The Financial News, booming demand for artificial intelligence (AI) has pushed memory semiconductor prices to nearly four times last year's level. This is fueling expectations for stronger earnings this year at Samsung Electronics and SK hynix, which produce DRAM and NAND.
According to industry sources on the 4th, Lu Weibing, president of Xiaomi's smartphone division, wrote on Weibo the previous day, "The recent increase in memory prices has far exceeded our expectations," adding, "For the same specifications, prices have risen to nearly four times compared with the first quarter of last year."
He noted, "The 12GB+512GB model has gone up by about 1,500 yuan (around 330,000 won), and the 16GB+1TB model has risen even more, which is a heavy burden," explaining that "this is having a significant impact even on the Redmi lineup, which has built its reputation on extreme value for money."
The spike in memory prices is quickly feeding through to higher prices for finished products. Samsung Electronics has already raised the launch price of the Samsung Galaxy S26 series by about 200,000 won compared with its predecessor, and has since increased prices on existing models as well, effectively rolling out across-the-board hikes.
Samsung Electronics raised the prices of the 512GB models of the Samsung Galaxy Z Flip7 and Samsung Galaxy Z Fold7 from 1,643,400 won to 1,738,000 won and from 2,537,700 won to 2,632,300 won, respectively, an increase of 94,600 won each. The 1TB Galaxy Z Fold7 model climbed from 2,933,700 won to 3,127,300 won, up 193,600 won. The 512GB model of the Samsung Galaxy S25 Edge, launched in May of the same year, also rose from 1,639,000 won to 1,749,000 won, an increase of 110,000 won.
This trend is not confined to smartphones; it is spreading across the broader IT sector. Major PC makers such as Lenovo and Dell have raised product prices by 15–20%, while Sony has increased the price of its PlayStation 5 (PS5) game console by about 150,000 won. Sony had already raised PS5 prices in the United States in August last year and moved to implement another hike in less than a year.
Behind these price increases lies an explosion in memory demand driven by the spread of AI. As investment in generative AI services and data centers surges, demand for High Bandwidth Memory (HBM) and DRAM is rising in tandem. In particular, HBM for AI servers remains in a state of "excess demand," where supply cannot keep up, and is leading the overall price rally.
Ultimately, higher memory prices are expected to translate directly into improved earnings for Samsung Electronics and SK hynix. Rising prices push up the average selling price (ASP), acting as a key driver accelerating the recovery in profitability.
Kim Rok-ho, an analyst at Hana Securities, commented, "Both DRAM and NAND are trading at higher prices than previously expected, and we are seeing price increases across downstream industries, from servers to mobile devices and PCs," adding, "Server prices have risen on the back of solid demand, and mobile and PC manufacturers appear to have ramped up purchases preemptively out of concern over further price hikes." He went on to say, "Contrary to earlier worries, customers are partially accepting price increases despite higher costs," and added, "Mobile prices in particular are likely to see the largest gains, and Samsung Electronics and Apple Inc. may use this as an opportunity to expand their market share."
solidkjy@fnnews.com Gu Ja-yoon Reporter