The recent price escalation from Apple was an anticipated development; however, the company is now striving to secure its DRAM supply amidst the burgeoning demand from AI chip manufacturers.
This necessity has prompted Apple’s efforts to engage a non-entity-listed Chinese memory supplier, CXMT.
While analysts suggest that this partnership may not resolve underlying supply chain or pricing challenges, it does address Apple’s paramount concern: mitigating the risks associated with DRAM shortages.
With the DRAM shortage firmly established, Apple’s focus has pivoted towards ensuring a reliable supply, with forecasts suggesting a 10-20 percent reduction in volume.
Observing the rapid price increase from $39 to a staggering $145 for a 12GB LPDDR5X RAM chip exemplifies Apple’s shift towards risk reduction rather than merely escaping price inflation.
The inclusion of CXMT illustrates this strategy. TF International Securities analyst Ming-Chi Kuo reveals that Apple’s forecasted “pull-in” volumes for the A20 and A20 Pro chips are projected to drop by 10-20 percent from the second half of 2026 through the first quarter of 2027, attributable to the ongoing shortage.
The memory supply-demand gap will keep widening through 2027. That is the real reason Apple is lobbying the White House to keep CXMT off the Entity List.
▌Start with my latest industry checks: The pressure on Apple has shifted from soaring memory costs to a widening supply gap.— 郭明錤｜Ming-Chi Kuo (@mingchikuo) June 28, 2026
Contrary to perceptions that involving CXMT will rectify Apple’s pricing and supply dilemmas, Kuo underscores that the technology giant’s primary objective is to alleviate the risk of DRAM scarcity, which conceivably threatens iPhone 18 shipments.
This very supply constraint has triggered a strategic transition, with Apple reportedly opting for TSMC’s 1.4nm manufacturing process after just two generations at the 2nm node.
| Components | Price before shortage | Price after shortage | Price difference in percentage |
|---|---|---|---|
| RAM (12GB LPDDR5X) | $39 | $145 | 272% |
| Storage (256GB) | $13 | $51 | 292% |
Kuo further intimates that Apple’s incoming CEO, John Ternus, may lack the requisite experience to navigate the complexities of U.S.-China relations, positioning Tim Cook as the more suitable leader.
This succession strategy must materialize before Cook’s eventual departure, or Apple risks further supplier losses.
Samsung and SK Hynix are poised to maintain the majority of the DRAM supply, and as earnings gravitate towards AI chip clients, their market stance is unlikely to alter soon.
Source link: Wccftech.com.
