Last night, Apple reported its earnings, and of course, fielded questions from analysts and investors on its earnings call shortly thereafter. As you’d expect, memory was a big topic of conversation in that earnings call.
Apple said during its earnings call that, “We paid more for memory in the March quarter than the December quarter. We expected to pay significantly more in the June quarter than the March quarter. And that is what happened; it was partially offset by the benefit of carrying inventory. For September, we expect to pay even higher memory costs.”
Apple was then asked about exploring DRAM suppliers from China like XMT and NAND suppliers like YMTC, which Apple responded with, “We’re continuing to evaluate this in terms of the sources of supply. It would help us on the supply side and perhaps the pricing side. It’s unclear on the pricing side, but it could help on the supply side. We’re evaluating all options.”
Unsurprisingly, Apple is currently testing DRAM products from CXMT and might decide to start using them in the future. Keep in mind that Samsung, SK Hynix, and Micron currently own about 90% of the DRAM market, so they can kind of fix the pricing to their liking. Which is why Apple is looking elsewhere.
US Senators pushback against Apple using Chinese DRAM
As expected, a few US Senators are pushing back against Apple using DRAM from CXMT, including Jim Banks and Chuck Schumer, who urged Apple to abandon talks with CXMT and YMTC, even for devices sold only in China. Both of these companies are on a Pentagon list of Chinese military companies. While YMTC is also on the Commerce Department’s Entity List – the same list that banned Huawei from the US.
Apple does have a bit of sway with the government, and has worked with the US before on other issues like tariffs. So I’m sure this pushback was thought about before even talking with CXMT and YMTC.
The post Apple May Turn to Chinese RAM Suppliers, and Washington Is Already Pushing Back appeared first on Android Headlines.
