Apple was hoping to make a deal with Chinese supplier CXMT for lower RAM prices, but that plan has been foiled, by the memory supplier itself! Apple had hoped to use the lower prices it would negotiate with CXMT to leverage lower prices from its usual memory suppliers, Samsung and SK Hynix, to lower their prices. Unfortunately, CXMT is looking to be paid the same price Samsung gets paid.
Apple has been scrambling to deal with ever-rising RAM prices, and in June was forced to hike prices on several of its products, from the Apple TV, to the MacBook Neo, to the Vision Pro.
Apple has been looking to buy memory from Chinese suppliers CXMT and YMTC, who are currently on the US government’s “blacklist ” of suppliers. The company lobbied the Trump administration for its blessing to deal with the two memory manufacturers, with plans to only use the two companies chips in devices destined for the Chinese market. This would free up chips from other companies to be used in devices headed for the United States and other countries.
Apple has had to deal with several issues over its plan, as a bipartisan group of US senators has pressured Apple Inc. to drop its plans to buy chips from the blacklisted Chinese duo, due to fears that it could make the iPhone maker more reliant on a US adversary for crucial components.
Idaho-based Micron Technology has also attempted to raise concerns over Apple’s plan, saying it could “destroy the domestic industry.” It should be noted that Micron reportedly supplies somewhere around 30% of the memory components Apple uses in its devices.
Now, Korean technology site Digital Daily reports that CXMT has rejected Apple’s demands for steep discounts. While Apple traditionally has the upper hand when it comes to price negotiations with suppliers, CXMT already has enough multi-year contracts in place with Chinese device manufacturers that it doesn’t need Apple as badly as Apple needs it.
That gives CXMT the leverage when it comes to negotiations this time around. Instead of giving Apple a discount from Samsung and SK Hynix prices, they want Apple to pay the same amount.
RAM manufacturers say things aren’t likely going to improve for the tight DRAM market until 2030, so for the next four years or so, Apple has a tough road ahead.
