Chinese memory chip manufacturer ChangXin Memory Technologies (CXMT) has rejected Apple’s demands for lower DRAM prices, countering with rates comparable to or even higher than industry competitors in a move that threatens to push up future iPhone costs.
Apple has long relied on a dual-sourcing strategy—leveraging alternative suppliers offering lower prices to pressure its main partners—to keep component costs down. While historically effective, the approach severely squeezed memory manufacturers like Micron, which previously detailed how Apple squeezed DRAM suppliers' margins. However, the surge in demand driven by artificial intelligence has shifted market dynamics, handing bargaining power back to chipmakers.
CXMT not only turned down Apple's discount request but offered prices matching or exceeding quotes from established rivals SK Hynix and Samsung, raising prospects that upcoming iPhone models could prove more expensive than initially expected.
The Chinese firm's firm stance stems largely from heavy capacity backing by domestic smartphone giants Huawei and Xiaomi. Bound by long-term contract pricing, CXMT has little incentive to concede to Apple’s terms, potentially boosting the leverage of SK Hynix and Samsung as alternative low-cost suppliers dwindle.
The development poses a fresh headache for Apple at a critical leadership juncture. Chief executive Tim Cook, renowned for his supply chain expertise and aggressive negotiation tactics, is set to step down in September 2026.
Incoming chief executive John Ternus, who will take the helm following Cook's departure, brings a background focused primarily on product innovation rather than supply chain management.
Source: WCCFTECH, Barchart, Tech Powerup, ddaily, digitaltrends
