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SK Hynix reports another record, while simultaneously making it clear that the memory shortage will persist for years to come. More than half of its production for 2027 and 2028 is already allocated to 14 major customers, and there is hardly any DRAM available until 2029. This means that cost pressures for iPhones and Macs will remain.
SK Hynix, along with Samsung, is one of the major memory suppliers from whom Apple sources RAM and flash memory. On October 28th, the South Korean manufacturer presented its figures for the third quarter of 2026. The subsequent conference call with analysts focused less on the record results and more on the question of how long memory shortages would persist.
The answer isn't new, but it's now much more concrete. Back in July, CEO Kwak Noh-jung had already stated that demand would exceed Apple's production capacity even beyond 2030. What's new is the information on how much of future production is already firmly scheduled. The situation for Apple had already become critical in September, when reports indicated significantly higher storage prices for the iPhone starting in 2027.
Key Facts at a Glance
- SK Hynix has signed long-term contracts with 14 major customers, spanning five years. These contracts cover more than half of the capacity for 2027 and 2028.
- The prices in these contracts are within an agreed range; advance payments secure acceptance.
- According to the company, DRAM and HBM are practically sold out until 2029, and the shortage is expected to last until 2030.
- SK Hynix expects declining sales figures for PCs and mobile devices because the expensive memory is impacting device prices.
Record quarter with 80 percent margin
The figures show who is profiting from the scarcity. Sales rose to 104.6 trillion won in the third quarter, an increase of 32 percent compared to the previous quarter. Operating profit was 83.3 trillion won, with an operating margin of 80 percent.
| Key figure | Q3 2026 | Change compared to the previous quarter | Change year over year |
|---|---|---|---|
| Sales volume | 104.6 trillion won | +32 % | +328 % |
| Operational outcome | 83.3 trillion won | +38 % | +632 % |
| Operating margin | 80 % | +3 percentage points | – |
The result was primarily driven by HBM, the memory used for AI accelerators in data centers, and SSDs for servers. Higher prices also played a role: According to the company, the average selling price of NAND flash memory rose by about a quarter during the quarter.
Fourteen customers share half of the production
The real insight comes from the conference call. SK Hynix has signed long-term contracts with 14 key customers, including major cloud providers. These contracts cover more than 50 percent of capacity for 2027 and 2028, typically run for five years, and are expected to account for roughly half of future production.
The prices are not fixed, but fluctuate within an agreed range. Customer deposits secure the purchase. SK Hynix is already in talks with some customers about longer contract terms.
If you add up the long-term contracts and the quantities currently being negotiated, DRAM and HBM are practically sold out until the end of 2029, according to the company. Chief Financial Officer Kim Woo-hyun spoke of a shortage that will last until 2030.
Smartphones and PCs bear the costs
The situation isn't getting any easier for consumer devices. SK Hynix expects unit sales of PCs and mobile devices to decline because rising memory prices are putting pressure on device costs. Growth in AI data centers is expected to more than compensate for this decline for the manufacturer.
SK Hynix has not disclosed who its 14 contract customers are. There is no confirmation that Apple is among them. Even if Apple were, such a contract would only guarantee volumes but limit prices within the agreed-upon range.
Apple had already hinted at further price increases in June. Since then, several devices have become more expensive in Germany, while others have remained the same price. The MacBook Pro with M6 starts at €100 more than its predecessor, the iMac with M6 remains at its old price, and the entry-level MacBook Neo has been €799 since the June price hike.
| Device | Previous price | Price now | Occasion |
|---|---|---|---|
| MacBook Neo (Entry-level) | 699 € | 799 € | Price increase on June 25, 2026, same model |
| iPhone 18 Pro (256 GB) | €1,299 (iPhone 17 Pro) | 1.449 € | Generational change, September 2026 |
| MacBook Pro 14″ (Entry-level) | €2,199 (M5) | €2,299 (M6) | Generational change, October 27, 2026 |
| iMac (Entry-level) | unchanged (M4) | unchanged (M6) | Generational change, October 27, 2026 |
Why long-term contracts are decisive
I consider the information on long-term contracts more important than the year 2030. If more than half of the production is tied to a few major customers for five years, only the remainder is left for the open market – and there, no agreed price range applies. Those not among the top 14 are buying precisely in this segment.
For Apple, this changes little. The price list shows that Apple has so far been selectively passing on the costs, instead of increasing prices across the board. I expect Apple to address storage costs again in its quarterly earnings report on November 2nd – Apple already warned of significantly larger supply shortages back in July.
Are you buying your next iPhone or Mac now because you expect prices to continue rising – or are you still waiting for the next generation? Tell us in the comments how you're planning your next purchase.
