The ongoing chip shortage has left Apple searching for a cheaper source of memory parts as regular suppliers keep raising their prices across the board. The tech giant recently turned to the Chinese manufacturer CXMT, hoping to strike a deal to lower its costs. The plan hit a wall because CXMT is asking for the same amount of money that established players like Samsung currently charge for memory hardware.
The supplier refuses to offer discounts despite strict quality demands
Apple wanted to pay a lower price while still asking for strict quality checks on its parts. A new report shows that CXMT shut down this request for a discount. The supplier asked for the same rates that SK Hynix and Samsung charge right now.
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CXMT does not need Apple to stay afloat. The supplier already has deals with massive Chinese brands like Huawei and Xiaomi. These long-term agreements give CXMT enough work to keep busy, making it very easy for it to turn down a bad offer.
Global chip shortages force memory component prices to stay high
The whole market is feeling the squeeze right now. Big suppliers are busy building parts for huge AI data centers instead of phones. This shift limits the available supply of parts for a new iPhone and other mobile devices.
Since the big names are focused on data centers, CXMT has become a massive player for phone memory in China. Things got so tight that Apple even asked the government for permission to buy from the blacklisted company.
The tech giant will face major hurdles sourcing memory components moving forward. Experts do not think the market will get better before 2030, meaning these high costs are not going away anytime soon.
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