- CXMT is said to have rejected Apple’s request for a RAM price cut during supply talks.
- Huawei and Xiaomi demand has given the Chinese memory maker stronger leverage.
- The setback could complicate Apple’s effort to reduce component costs and diversify suppliers.
With rising memory costs and supply constraints predicted to last for a while, practically every consumer electronics company in the world is currently being impacted.
Apple seems to have shifted its focus to Chinese memory manufacturers amid the crisis, but a new report suggests the smartphone giant’s initial round of negotiations with a popular Chinese company hasn’t been too fruitful.
Why it matters: Memory pricing directly affects Apple’s margins across iPhones, iPads, and Macs. If Apple cannot secure cheaper RAM from CXMT, it may be unable to provide ample supply at affordable prices.
Apple has reportedly failed to secure a lower RAM price from ChangXin Memory Technologies, better known as CXMT, as the iPhone and Mac maker continues looking toward Chinese memory suppliers for potential cost savings.
CXMT is said to have declined Apple’s demand for a price cut, with strong demand from domestic Chinese tech giants like Huawei and Xiaomi giving the supplier rare negotiating power.
Apple was likely hoping to use CXMT as a cheaper alternative in its broader memory supply chain, but reports suggest that CXMT quoted prices that were on par with or higher than Samsung and SK Hynix’s.
Of course, both Samsung and SK Hynix are currently focused on meeting demand for data centers. Making matters more difficult for Apple, US sanctions on China mean that Huawei and Xiaomi have had orders booked with the company well in advance.
Given recent events, it will be interesting to see how the situation related to the memory crisis evolves over time and whether Apple will eventually reach an agreement with CXMT.
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[News Reporter]
Bawal is an MBBS student by day and a gaming journalist by night. He has been gaming since childhood, growing fond of the creativity and innovation of the industry. His career as a gaming journalist started one year ago, and his journey has allowed him to write reviews, previews, and features for various sites. Bawal has also been cited in reputed websites such as Screenrant, PCGamesN, WCCFTech, GamesRadar, and more.
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