Apple is evaluating Chinese DRAM despite CXMT's refusal to lower prices.
Apple appears to be testing CXMT memory for use in iPhones and MacBooks.
Apple's pursuit for additional memory supply has progressed further. According to The Wall Street Journal, the company is currently testing DRAM from the Chinese manufacturer CXMT for various products, including iPhones and MacBooks. Additionally, Apple has engaged in preliminary discussions with CXMT regarding memory supply for certain devices sold in China and is seeking approval from the U.S. government before proceeding.
The timing is particularly noteworthy. Recently, it was reported that a DRAM shortage might be delaying the production of the A20 Pro chip anticipated for the iPhone 18 Pro. TSMC is reportedly sitting on about $1 billion worth of completed chips that are awaiting memory before packaging can continue.
Apple requires more memory, not merely better prices.
The iPhone manufacturer had already reached out to CXMT to secure additional DRAM supply, but its efforts to negotiate lower prices were unsuccessful. CXMT's pricing was reported to be on par with or even higher than that of Samsung and SK Hynix. Other Chinese manufacturers, including Huawei and Xiaomi, have secured much of CXMT's available output through long-term agreements, leaving CXMT with little incentive to provide Apple with the discounts it typically expects from suppliers.
If the report is accurate, it seems that Apple may have shifted away from the objective of obtaining cheaper DRAM and is now focused on securing sufficient DRAM for the upcoming fall launch of the iPhone 18 Pro lineup.
Washington's intervention could still pose a challenge.
Even if Apple is prepared to purchase CXMT memory at the current prices, utilizing it could present another hurdle. The company is looking for assistance from the U.S. government before proceeding with plans to incorporate the Chinese supplier's memory in devices sold in China. Any agreement would arise at a sensitive period for U.S.-China chip relations, and Apple may seek political approval prior to including CXMT components in its products.
Apple has already increased prices on several Macs and iPads after absorbing higher component costs for an extended period. While the iPhone has so far avoided similar price adjustments, the iPhone 18 Pro might be next in line. Numerous analysts have indicated that the iPhone 18 Pro Max could experience a price hike of around $200 to $300, with similar increases anticipated for the iPhone 18 Pro.
Furthermore, Apple has proactively introduced a new leasing initiative called Apple Upgrade, providing customers with an alternative way to acquire the latest iPhone without needing to pay the full price upfront. If Apple is indeed looking to CXMT solely to ensure adequate DRAM for the fall launch, maintaining production of the iPhone 18 Pro may take precedence over keeping prices low.
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Apple is evaluating Chinese DRAM despite CXMT's refusal to lower prices.
Apple is said to be testing CXMT memory in various products such as iPhones and MacBooks, despite the Chinese supplier declining to provide the lower DRAM prices that Apple preferred.
