Prices have increased, and you need to pay the difference! The three major storage giants plan to introduce a "short-term contract + post-settlement" model

The global storage chip market is undergoing a major transformation in pricing rules.

According to ETNews on Friday, storage giants such as Samsung, SK Hynix, and Micron are implementing a new contract model that not only shortens contract durations significantly to quarterly or even monthly terms but also introduces “post-settlement” clauses—meaning that even after supply completion, customers are still required to make additional payments based on market prices. This change primarily targets large North American tech companies.

This new type of contract allows suppliers to adjust payments after delivery based on market prices. For example, if the DRAM contract price is 100 Korean won and the market price doubles after a year, the customer must pay an additional 100 won difference. This marks a fundamental shift in the storage industry from traditional fixed-price models to dynamic pricing mechanisms.

Industry insiders expect that these supplier-favorable contract terms will last at least until the second half of 2026, as storage chip prices are expected to continue rising. Even tech giants with massive procurement volumes like Apple cannot avoid the impact; their storage procurement prices after the first half of 2026 still have room for further increases. Tight supply and price volatility are reshaping the pricing landscape of the storage market, with the buyer’s market having completely shifted to a seller’s market.

Fundamental Change in Pricing Mechanisms, Significantly Shorter Contract Durations

The traditional pricing model for storage products is being disrupted. ETNews points out that in the past, prices for storage products like DRAM and NAND were usually fixed at the start of supply contracts, with price adjustments limited to about ±10% during quarterly negotiations, even if market conditions changed.

But the new contracts introduce “post-settlement” clauses, allowing payments to be adjusted based on market prices even after delivery, effectively enabling suppliers to capture gains from price increases. This mechanism completely breaks the certainty of fixed-price contracts and shifts all market risk to the buyer.

In addition to changes in payment methods, contract durations are also being significantly shortened. ETNews states that although storage buyers seek two-year or longer contracts to ensure stable supply for expanding AI infrastructure, limited inventories and price fluctuations have led many contracts to be shortened to quarterly or even monthly terms.

Industry insiders told ETNews that these supplier-favorable agreements could last at least until the second half of this year, as storage prices are expected to remain strong. Shorter contract durations allow suppliers to more frequently adjust prices based on market conditions, further strengthening their pricing dominance.

Tech Giants Are Not Exempt

Even tech giants with enormous purchasing power cannot avoid this wave of price increases. ZDNet cites industry sources saying that although Apple typically signs long-term storage supply agreements, current storage shortages mean prices are only locked in until the first half of 2026, leaving room for further price hikes when launching the new flagship iPhone 18 later this year.

According to ZDNet, Samsung and SK Hynix increased their LPDDR prices for iPhone shipments in the first quarter, with Samsung’s quarter-over-quarter increase exceeding 80%, and SK Hynix’s around 100%. This shows that even a major buyer like Apple has lost its traditional bargaining advantage amid current supply tightness.

In a limited supply environment, leading storage manufacturers are tightening control measures. Nihon Keizai Shimbun reports that Micron, SK Hynix, and Samsung are rigorously reviewing customer orders, requiring disclosure of end customers and order volumes to prevent hoarding or overbooking that could further disrupt the market.

This review mechanism indicates that suppliers not only dominate pricing but also hold greater influence over supply allocation, further consolidating the current seller’s market landscape.

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