Apple Scrambles for DRAM, CXMT Reportedly Rejects Negotiations

Apple is one of the largest supply chain operators in the world, maintaining a vast network of suppliers and manufacturing capacity. However, even a company of its stature is struggling amid the current DRAM shortage. According to Tim Culpan's Culpium newsletter, Apple is scrambling to secure DRAM just weeks before its annual iPhone update cycle. With less than six weeks until the launch of the iPhone 18 series and the iPhone Ultra, assemblers are rushing to place DRAM orders to secure new supplies. The Cupertino-based giant primarily relies on DRAM from Micron, whose LPDDR5X memory is used in a range of devices and is the main source for the next-generation iPhone. SK hynix and Samsung are also suppliers, but Micron remains the primary choice.

Interestingly, another report has surfaced about Apple's efforts to secure more DRAM. The company has reportedly entered negotiations with Chinese memory giant CXMT for LPDDR5X memory needed for its current product lineup. Apple attempted to negotiate better pricing with CXMT, likely due to the volume it plans to purchase, but CXMT rejected the proposed lower price. This is one of the first instances where negotiation power lies with the suppliers, as CXMT is producing one of the world's most in-demand commodities and is offering it at market rates without discounts.