The firm’s tactical transition towards more “lucrative” productions appears to have influenced its DRAM output, resulting in a deficiency. Reports suggest that Samsung is facing a DRAM production shortfall due to its heightened emphasis on high-bandwidth memory (HBM) manufacturing for AI servers. This transition has, as reported, escalated expenses and could have repercussions for the upcoming “low to mid” range Galaxy smartphones. While there was conjecture concerning a possible price surge for the Galaxy S25 series, it ultimately did not come to fruition.
The deficiency is linked to a substantial increase in HBM production, which offers greater profitability than conventional DRAM. Samsung’s transition towards HBM aims to accommodate the rising demand for AI and AI servers, but it has left DRAM production short on essential resources. This circumstance may influence Samsung’s “low to mid-priced devices,” possibly affecting the Galaxy A series and potentially future FE models.
Although the DRAM shortfall presents difficulties, Samsung’s initiatives in HBM production have likewise led to price increases for SSDs. Nonetheless, consumers can rest assured that there is no imminent price hike for future Galaxy S series smartphones. In spite of previous speculation, Samsung did not elevate prices for the Galaxy S25 series, including the S25 Ultra, maintaining a price of $1,299.
Samsung’s emphasis on HBM manufacturing signifies its strategy to leverage more profitable opportunities, yet it must tackle the DRAM shortfall to avert possible effects on its product range. As the company maneuvers through these obstacles, consumers look forward to the Galaxy S26 series, which might experience a postponed release.
