Apple begins testing more affordable Chinese RAM in iPhones, but your wallet won't benefit from the savings.

      Apple has discreetly started testing a new memory supplier for certain devices sold in China, and this supplier is one that the U.S. government has been monitoring closely.

      I mentioned this in a previous article, where speculation arose about Apple’s interest in a Chinese memory supplier following the company’s announcement of significant price increases for most of its products (excluding the iPhone and Apple Watch).

      So, who is CXMT, and why is Apple evaluating its chips?

      ChangXin Memory Technologies, known as CXMT, is headquartered in Hefei, China, and ranks as the fourth-largest DRAM producer in the world, trailing Samsung, SK Hynix, and Micron.

      As reported by the Financial Times, Apple has initiated testing of CXMT’s chips for devices specifically sold in China. This move is part of a larger initiative by U.S. tech firms to gain government approval for broadening the use of CXMT’s products.

      However, obtaining such approval may pose challenges, particularly since CXMT is listed on the Pentagon's Chinese Military Company registry, which creates both reputational and political concerns for Apple.

      Apple encountered similar backlash in 2022 when it considered a partnership with YMTC, another Chinese chip manufacturer.

      Will these developments lead to lower prices for your devices?

      I doubt it. Analysts from SemiAnalysis indicate that nearly all of CXMT’s production is already allocated. Moreover, the company is anticipated to experience supply constraints for at least the next two years, even with new production facilities opening in Hefei, Shanghai, and Beijing.

      Currently, CXMT accounts for approximately 11% of global DRAM wafer capacity, a figure that analysts predict could rise to 15% within the next two years.

      In my opinion, Apple’s experimentation with CXMT seems more like a supply chain strategy aimed at local inventory for the Chinese market rather than a solution that would impact globally sold products.

      For now, the report does not suggest any U.S. government delays regarding the decision, although such postponements have occurred multiple times in the past, which is worth considering.