Don't expect cheaper phones anytime soon. According to new information, Samsung is signing long-term contracts for the supply of memory chips, with the contracts expected to cover almost 70% of its production capacity until 2031. For manufacturers, this is a beneficial insurance against market fluctuations, but for customers it may mean further pressure on electronics prices.
The memory chip market has always been known for its strong cycles. When supply nestAs demand increased, prices rose sharply. As soon as manufacturers increased production, there was usually an equally sharp decline. However, the current boom in artificial intelligence has changed the situation significantly.
Huge demand for AI servers is driving the segment up HBM memory, which are key for modern accelerators and at the same time offer manufacturers higher margins than classic DRAM chips. Samsung, SK hynix i Micron That's why they are shifting some of their capacities in this direction, and not just this year.
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Samsung secures future profits
According to the portal information SeDaily Samsung has a long-term contract up to 70% of its production memory, especially for large technology customers, among which are to be NVIDIA whether ecosystemThe contracts are to last until the year 2031 and also include pricing mechanisms that will help producers maintain favorable margins even if the market cools down later.
Pro Samsung It's a logical step. Long-term contracts give it more certainty when planning production and at the same time protect its income during periods when demand for memory is exceptionally strong. The catch is that part of the production capacity will be firmly tied to long-term customers. This may leave some short-term supply on the regular market. fewer memory chips, which creates further pressure on their prices.
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The impact may not be immediate and does not automatically mean that every new Galaxy will become more expensive. However, memory is an important part of the cost not only of smartphones, but also of computers, tablets and game consoles. If high prices persist, manufacturers will have to decide whether to absorb the higher costs or gradually pass them on to customers.
Samsung can thus profit significantly from the current AI boom. However, the news is less pleasant for ordinary consumers - a return to cheaper memory chips does not seem to be in sight yet.
