New players are shaking up the memory industry, but even Apple can’t strong-arm the RAM crisis for your wallet

New players are shaking up the memory industry, but Apple is struggling to control rising component costs. Apple has the purchasing power of a tech giant, yet even it cannot strong-arm suppliers to lower prices. China's CXMT, a memory manufacturer, has refused Apple's request for lower DRAM prices, quoting prices comparable to or higher than Samsung and SK Hynix.

CXMT has already secured most of its output through long-term deals with other Chinese manufacturers, leaving Apple with limited leverage. CXMT's growing influence may eventually benefit the memory industry, providing more competition and potentially reducing prices. However, CXMT is expanding into a market with numerous buyers, leaving little room for Apple to pressure another supplier.

Apple has turned to the US government for assistance, requesting permission to source DRAM from CXMT and NAND storage from YMTC for products sold outside the country. Approval could help Apple secure enough memory, but it may not bring down the prices Apple pays. CXMT has shown it is not willing to become Apple's bargain supplier, weakening Apple's hopes of reducing memory costs through another manufacturer.

Apple has started passing rising component costs onto customers, with prices for Macs, iPads, and potentially the iPhone 18 Pro lineup increasing by hundreds of dollars. The industry expects only a 16% increase in DRAM availability this year, while industry revenue is forecast to surge by 177% to $418.6 billion. Apple has absorbed the cost increase, accepting lower margins or reducing memory and storage configurations, with the iPhone 18 Pro Max reportedly costing nearly $300 more to produce than its predecessor.

MICRONS claims that major customers negotiated low prices during the previous memory downturn, leaving manufacturers unprepared when demand returned.