US confounds Apple’s memory supply challenge

US Commerce Secretary Howard Lutnick opposes Apple's plan to address rapid memory price inflation by purchasing RAM made in China for use in devices sold there. The US restricts trade with major Chinese memory manufacturers, CXMT and Yangtze Memory Technologies, requiring Apple to obtain a license before sharing product information with either firm.

However, Apple can still purchase off-the-shelf components without sharing product details. Lutnick favors exploring alternative solutions to the memory issue, but seems against using Chinese memory. Apple isn't alone in facing this challenge, as HP and Acer also utilize memory from CXMT in devices sold outside the US. Current memory vendors continue to raise DRAM prices while increasing production capacity, which won't reach production until 2029 at the earliest.

A bipartisan Senate push aims to force Apple to avoid doing business with the Chinese firms, potentially exacerbating the memory supply crisis. The lack of supply is causing global price increases, affecting consumer and enterprise electronics industries. Apple has had to delay delivery dates for new devices and temporarily stop sales of some high memory configurations.

Analyst Ming-Chi Kuo warned that Apple may scale back its hardware shipment plans for 2026. The shortage also impacts Apple silicon processor supply. US consumers and businesses continue to bear the costs of this indifference. Apple has raised some product prices by up to 25%, and further price increases may be necessary. This inflationary pressure is evident in consumer purchasing behavior, particularly in Japan, where refurbished iPhone sales have more than doubled after Apple's July price hikes.

As this trend spreads globally, it will affect new device sales and put additional pressure on the electronics supply chain, potentially leading to even higher prices for second-user devices and an additional inflationary wave.