Samsung, Apple Cut Smartphone Component Orders as Memory Chip Prices Surge

Samsung Electronics and Apple are reportedly reducing smartphone component orders as rising memory chip prices squeeze profit margins, raising concerns over Samsung Display’s fourth-quarter earnings, according to a report by The Korea Herald.

Samsung’s mobile division has asked suppliers to cut fourth-quarter component deliveries by 20–30 per cent compared with earlier plans. Meanwhile, Apple has reportedly reduced October orders for certain components used in its iPhone 18 Pro and Pro Max models by 15–20 per cent, citing industry sources.

The reductions come at a time when flagship smartphone launches typically boost demand for high-end organic light-emitting diode (OLED) panels. Although Samsung generally scales back handset production ahead of its next Galaxy S launch, the latest cuts are reportedly steeper than expected.

Samsung Display faces significant risks because of its dependence on the two smartphone manufacturers. According to its 2025 audited financial statements, customer groups believed to be Apple and Samsung Electronics contributed 40.4 per cent and 22.4 per cent of annual revenue, respectively. Together, they accounted for 62.8 per cent of total sales, amounting to 18.66 trillion won (approximately USD 14.1 billion).

Industry experts warn that the impact will depend on which components and display panels face order reductions. Cuts affecting premium iPhone models could disproportionately hurt operating profits, particularly if factory utilisation declines.

The pressure stems from surging memory chip prices as manufacturers shift production capacity towards more profitable server DRAM and high-bandwidth memory (HBM) used in artificial intelligence (AI) data centres. This shift has tightened supplies and increased costs for smartphone memory.

According to market research firm TrendForce, LPDDR5X memory prices rose 78–83 per cent in the second quarter compared with the previous quarter. The rising costs could also put pressure on smartphone manufacturers’ profitability and display panel pricing.

However, Apple’s newly launched iPhone Duo, its first foldable smartphone, could offer some relief to Samsung Display. The device, which went on sale on Friday, reportedly features OLED panels supplied exclusively by Samsung Display.

The coming quarter will therefore be crucial for Samsung Display as it navigates reduced component orders, higher memory costs and uncertain demand for premium smartphones, while hoping that demand for foldable devices will help offset the pressure.