Highlights
- Samsung’s DRAM division delivered $25.9B in Q4 2025 revenue, growing 34% QoQ and contributing about 40% of total revenue.
- The company projects a three‑fold jump in operating profit to 20 trillion won ($13.8B), fueled by booming demand for HBM.
- Rising semiconductor and memory costs may lead Samsung to reprice products with the Galaxy S26 series.
(Photo by Babak Habibi on Unsplash)
Samsung is reportedly considering repricing its products as memory prices surge and its DRAM business delivers record-breaking performance. Over the past few months, RAM prices have climbed sharply, fuelling concerns that Android smartphones and other devices could become more expensive as conventional memory supply tightens.
Despite this, Samsung’s DRAM division emerged as a major growth driver in Q4 2025, accounting for a significant share of the company’s profits.
Samsung’s DRAM Division Sets New Records
According to a Counterpoint report, Samsung achieved record DRAM sales in the fourth quarter of 2025. This figure likely includes both traditional DRAM and high-bandwidth memory (HBM) used in advanced computing applications. During the quarter, Samsung’s memory business alone generated $25.9 billion in revenue.
The report highlights a 34% quarter-on-quarter growth with DRAM sales contributing nearly 40% of Samsung’s total revenue. This performance placed Samsung at the top of the global memory market, alongside rivals SK Hynix and Micron.
Rising Costs Could Impact Galaxy S Series Pricing
The strong DRAM performance comes at a time when Samsung has hinted that higher production costs could lead to more expensive devices. A recent Bloomberg report cited comments from Samsung executive Wonjin Lee, who pointed to concerns over semiconductor supply constraints. Growing demand for HBM, driven by the rapid expansion of AI development, is pushing manufacturing costs higher.
Samsung has alluded to the need to “reprice products,” a move that could directly impact the Galaxy S lineup. Recent reports already suggest that the upcoming Galaxy S26 series may carry slightly higher price tags than its predecessors.
Beyond smartphones, consumers are also feeling the impact of rising memory prices. Users have reported steep increases in the cost of standard DDR5 PC RAM. While this memory type differs from HBM, fabrication capacity is increasingly being allocated to higher-margin AI-focused memory, reducing the availability of conventional RAM.
Samsung Projects 3X Profit in Q4 2025 Based on AI Memory Demand
Samsung projected a three-fold jump in operating profit for Q4 2025, driven largely by AI-led demand for memory chips. The company estimates operating profit of 20 trillion won (around $13.8 billion) for the October–December period, up sharply from 6.49 trillion won a year earlier and well above market expectations.
This marks Samsung’s strongest quarterly profit on record, surpassing its previous peak in 2018. The announcement pushed Samsung’s share price to a new high, extending a 155% rally over the past year.
While memory has been a standout performer, analysts expect Samsung’s mobile division profits to decline year-on-year in Q4. In contrast, the display business is likely to benefit from strong iPhone 17 sales.
TM Roh, Samsung’s co-CEO overseeing mobile and consumer electronics, acknowledged that higher memory prices will inevitably affect the business and did not rule out future price adjustments.
Meanwhile, analysts see significant growth potential in advanced memory like HBM. Although Samsung’s HBM business was relatively small last year, expectations are high from 2026 onwards. Samsung co-CEO Jun Young-hyun recently said customers have praised the competitiveness of the company’s upcoming HBM4 chips, sharing feedback that stated, “Samsung is back.”
Samsung is scheduled to release a detailed breakdown of its fourth-quarter results on January 29.
FAQs
Q1. Why is Samsung considering repricing its products?
Answer. Samsung is facing rising semiconductor and memory costs, particularly due to surging demand for high‑bandwidth memory (HBM) in AI applications. Executives have hinted that these higher production costs could lead to more expensive devices, including the Galaxy S26 series.
Q2. How did Samsung’s DRAM division perform in Q4 2025?
Answer. Samsung’s DRAM business achieved record sales of $25.9 billion in Q4 2025, marking a 34% quarter‑on‑quarter growth and contributing nearly 40% of the company’s total revenue, making it a key driver of overall profitability.
Q3. What profit outlook did Samsung announce for Q4 2025?
Answer. Samsung projected an operating profit of 20 trillion won ($13.8 billion) for Q4 2025, a threefold increase from the previous year. This represents its strongest quarterly profit ever, driven largely by AI‑led demand for memory chips.