Apple’s search for lower-cost memory chips has encountered a major obstacle. Chinese memory manufacturer CXMT has reportedly declined Apple’s request for discounted pricing. The move comes as Apple looks for ways to manage rising component costs during a global memory shortage driven by artificial intelligence demand.
Apple had tested CXMT memory as a possible alternative to its existing suppliers. However, the company’s pricing proposal failed to gain support, leaving Apple to continue searching for cost-effective options.
Strong Demand Shifts the Market
The memory market has changed rapidly over the past year. AI companies continue buying large amounts of advanced memory for data centers. As a result, manufacturers now have greater pricing power than many of their traditional customers.
Because of this demand, Apple no longer holds the strong negotiating position it once enjoyed. Although the company remains one of the world’s largest technology buyers, suppliers now have more opportunities to sell their products elsewhere.
CXMT Stands Firm on Pricing
According to the report, CXMT did not reject Apple as a customer. Instead, it refused to offer lower prices than those already charged by major memory suppliers. The company reportedly quoted Apple rates similar to those offered by Samsung and SK Hynix.
CXMT also serves large Chinese smartphone makers, including Huawei and Xiaomi, through long-term supply agreements. Therefore, the company has less pressure to lower prices for new customers.
AI Boom Continues to Tighten Supply
Meanwhile, Samsung and SK Hynix continue focusing on high-performance memory for AI data centers instead of smartphones. Consequently, supplies of conventional smartphone memory remain under pressure. Industry manufacturers believe the DRAM market may not stabilize until around 2030.
Apple also faces another challenge. Any future purchase from CXMT would still depend on regulatory approval because of existing restrictions tied to the supplier.
What This Means for Apple
Apple’s failed pricing negotiations highlight the growing impact of AI on the global semiconductor market. The company continues looking for ways to control production costs, but suppliers currently have the advantage.
For now, Apple appears likely to rely on its existing memory partners while monitoring future market conditions. Until supply improves, memory prices may remain elevated, creating continued pressure across the consumer electronics industry.
