Apple has encountered an unusual situation in its supply chain. According to the South Korean media Digital Daily, the Chinese memory manufacturer CXMT (ChangXin Memory Technologies) reportedly refused to lower the price of its LPDDR5X chips during negotiations to supply memory for the company’s future devices. If confirmed, this would represent a significant shift in the balance of power in the DRAM market, where even Apple is facing challenges in imposing its commercial terms.
The key points of the Apple-CXMT negotiation in 20 seconds
- Apple reportedly tried to incorporate CXMT’s LPDDR5X memory to reduce costs in upcoming devices.
- According to South Korean sources, the Chinese manufacturer rejected further discounts.
- Strong domestic demand in China has eliminated the need to compete via low prices.
- Samsung, SK hynix, and Micron are also benefiting from the current imbalance between supply and demand for memory.
The information comes from industry sources cited by Digital Daily, and so far, neither Apple nor CXMT has officially confirmed that these negotiations took place.
Memory shortages are changing negotiation rules
For years, Apple has leveraged its massive purchasing volume to negotiate better conditions with suppliers. Promising to supply components for hundreds of millions of devices has often served as a powerful tool of commercial leverage.
However, the market context has changed dramatically.
Major memory manufacturers are allocating an increasing portion of their production capacity to high-value-added memories, especially HBM (High Bandwidth Memory) for AI accelerators. As a result, the production of conventional memories like DDR5 and LPDDR5X has stagnated, reducing the available supply for smartphones, laptops, and other consumer devices.
In this scenario, suppliers no longer need to compete solely through discounts.
CXMT no longer needs to sell cheaply
According to the Korean media, Apple aimed to use CXMT as a new supplier to diversify procurement and cut manufacturing costs for upcoming iPhones and other products.
However, the Chinese company reportedly refused to lower its prices and is even offering certain products at levels similar to or higher than Samsung and SK hynix.
The reason is the strong demand within China.
Manufacturers like Huawei, Xiaomi, and other Chinese tech companies are signing long-term supply contracts to ensure access to domestic DRAM, amid the trade restrictions imposed by the United States on the semiconductor industry.
With much of its production committed, CXMT has little incentive to accept discounts or undergo the lengthy validation and certification processes demanded by Apple.
A growingly competitive manufacturer
The situation also reflects CXMT’s technological evolution.
While still behind Samsung, SK hynix, and Micron in segments like the latest-generation HBM memory, the company has made progress reducing the gap in mainstream memory technologies.
Its LPDDR5X catalog now includes packages up to 24 GB and speeds of 8,533 Mbps and 9,600 Mbps, with test versions reaching 10,667 Mbps.
According to data provided by the company itself, this generation offers a performance increase of 66% and a 30% reduction in energy consumption compared to the previous LPDDR5, although these figures are from internal tests and have not been independently verified.
Samsung and SK Hynix emerge strengthened
Paradoxically, CXMT’s growth could also benefit South Korean manufacturers.
As Samsung and SK hynix allocate more capacity to HBM4 and other AI-focused products, CXMT is absorbing part of the demand for conventional memory within the Chinese market.
This lessens competitive pressure on the Korean firms and helps keep DDR5 and LPDDR5X prices high.
If this balance persists, the three major international manufacturers will maintain significant bargaining power with clients like Apple, while CXMT can continue to grow thanks to strong domestic demand.
Information that still has not been confirmed
It’s important to approach this information with caution.
The alleged negotiations between Apple and CXMT come from industry sources cited by Digital Daily. No contracts, supply volumes, or specific prices have been published, and neither company has made official statements.
Nonetheless, even if some details differ, the general context reflects a widely shared industry reality: the strong demand for memory driven by AI is disrupting the traditional balance between component manufacturers and large buyers.
In a market where production capacity is limited and customers compete to secure supply, even companies as large as Apple may find their negotiating margins much narrower than just a few years ago.
Frequently Asked Questions
Does Apple already use CXMT memory?
Not publicly. The information suggests negotiations to incorporate CXMT as a potential supplier, but there is no official confirmation of supply agreements.
Why can CXMT refuse discounts?
According to sources, the strong demand from Chinese manufacturers and the global memory shortage reduce the need to compete via low prices.
What memory was Apple negotiating?
Reports indicate they were negotiating LPDDR5X chips, used in smartphones, tablets, and some laptops.
Is CXMT at the level of Samsung or SK hynix?
In conventional DRAM, CXMT has narrowed the gap but still lags behind the major manufacturers in strategic segments like AI-ready HBM memory.
via: v.daum.net
