High memory prices prompt Apple to visit South Korean factories daily, causing hotel boom

Facing a prolonged memory shortage, companies are taking extreme measures to secure stock. As reported by Wccftech, The Korea Economic Daily documented how smartphone and laptop makers are visiting factories daily. Apple is one manufacturer racking up astronomical travel bills, benefiting the South Korean hospitality industry.

PC builders are dealing with memory prices that have risen by as much as 300% since mid-2025. Apple is also seeking an affordable supply of LPDDR5X RAM for its iPhone lineup. More expensive phones or models that ship with less memory may be inevitable.

Hotels are also profiting from the memory shortage

To minimize the impact of the crisis, Apple has reportedly taken up permanent residence at a South Korean hotel. The location is within a reasonable distance of the Samsung and SK hynix plants that produce the coveted components. Taking an in-person approach, the goal is to sign two or three-year contracts.

The two suppliers have been reluctant to agree to long-term deals. Demand from AI data centers could fall sooner than expected, leading to moderating memory prices. That said, many analysts see few signs of relief for consumers and businesses until 2027 or 2028.

Other companies following Apple's lead

The Korean Economic Daily reveals that desktop and notebook seller Dell is also camped out at hotels. Likewise, cloud service providers, including Google and Amazon, regularly pester the factories. Sadly, customers without the same influence or travel budget must negotiate from afar.

In Apple’s case, it may be better positioned to survive the memory shortage. Efficient iPhones can often deliver acceptable performance with less RAM. The company also enjoys higher profit margins than its rivals, enabling it to absorb inflated component expenses. Nevertheless, memory accounts for at least 15-20% of the production costs of the smartphones.

Stalking factory executives may seem like a desperate tactic, but it’s more ethical than bribery. There have been rumors of handouts offered to Samsung employees to gain an edge over competitors.