Vivo and Oppo reject Samsung’s latest DRAM price hike, crisis continues to escalate

The DRAM crisis is weighing on the entire electronics industry. This is because the extreme demand for RAM, NAND flash memory, and computer chips from AI giants such as OpenAI and Google has caused the prices of these components to skyrocket since last fall. The end of the price increases is still a long way off. Some analysts expect the crisis to drag on for years.

Memory manufacturers such as Samsung, SK Hynix, and Micron are shifting production to HBM and server DRAM to maximize profits from the crisis. However, this is leading to a shortage of RAM for consumer products, such as laptops and smartphones. As reported by 36Kr, Xiaomi had therefore already reduced its smartphone production target for 2026 from 170 million to 95 million units. Now, however, production is set to be increased to 110 million units, as sources within Xiaomi’s supply chain indicate that the company expects to be able to purchase DRAM and NAND at lower prices again before the end of the year.

Meanwhile, resistance is mounting against the steady price increases. Oppo and Vivo are said to have rejected Samsung’s DRAM offer for the third quarter, even though the price increase would have been less drastic than in the previous quarter. However, while smartphone manufacturers are currently cutting back on production of low-end models to allocate available memory capacity to products with higher profit margins, Samsung Electronics, SK Hynix, and Micron are reportedly set to reduce production of DRAM and NAND for smartphones by up to 11 percent and instead allocate that capacity to data centers, further tightening supply and driving prices up as a result.