Chinese RAM supplier denies Apple's bid for cheaper RAM

Apple has been testing memory made by China's CXMT as a lower-cost supplier as its regular suppliers hike up prices, but CXMT is demanding what Samsung gets paid for RAM.

It was an idea that would help Apple in the short term at best, and it was one that got it repeated criticism from US senators and memory firms. But with the global chip shortage only getting worse because of demands from AI firms, Apple asked Trump to allow it to buy from blacklisted CXMT for use globally.

Now according to Korean technology site Digital Daily, however, CXMT has rejected Apple's discount demands. This may not be the end of Apple buying from the firm, though, as reportedly it is specifically the iPhone maker's attempt to negotiate a price cut that has failed.

But Apple is not in the strong position that its immense buying power usually places it. Apple not only wants to pay less, but it also always demands higher quality verification.

CXMT is already supplying Chinese manufacturers such as Huawei and Xiaomi, and in volumes large enough for it not to need Apple. Those deals with Chinese firms are multi-year ones, too.

So, while CXMT is said to be willing to deal with Apple, it has quoted the iPhone maker the same prices that Samsung and SK Hynix are charging.

Those two firms have been transitioning to providing high-quality memory for AI data centers, rather than for devices such as smartphones. Consequently, CXMT is becoming a major player in China for smartphone DRAM.

Much of the multi-year orders for memory by AI firms is intended for data centers that may never be built. There's no going back from made HBM, it can't be converted into DRAM or used in iPhones, so there's no relief there.

At some point there may be a readjustment of the market. Apple will again become one of the biggest buyers then.

But that's not happening soon. The DRAM market isn't likely to see improvement until 2030, according to the RAM manufacturers themselves.

But for now, Apple does not appear to have found the solution to the chip shortage that it may have believed it had. And that's even assuming that the company gets the waiver from the feds to buy the RAM and not be penalized for it by losing federal contracts.