Wednesday, August 5th 2026
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.
Chinese companies, including hyperscalers, neo clouds, and AI labs, are buying up all the available DRAM that CXMT is manufacturing. As a result, any output CXMT could provide to Apple is already reserved for Chinese customers willing to pay the current market price, rather than seeking discounts. As DRAM becomes even scarcer next year, this leverage in the supply chain is likely to increase in favor of DRAM manufacturers. It remains unclear whether Apple has accepted these regular market prices.
Sources:
Culpium, DDaily
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.
45 Comments on Apple Scrambles for DRAM, CXMT Reportedly Rejects Negotiations
So, it doesn't really solve the problem now.
Why do i see on a daily basis a news about apple, a small company which makes niche smartphones and niche computer hardware. In the high price segment but with very low usage numbers.
they should not destroy old devices but source those components from those. apple has plenty of old DRAM lying around.
You cannot just wave a magic wand to conjure up competency. "Fake it until you make it" isn't a real world strategy.
Apple can only hope that RAM manufacturers (Samsung, SK hynix, Micron supply 90% of the world's DRAM) are willing to increase production. A new foundry is $10+ billion these days and requires years to bring online. That's when the operator knows exactly what they are doing.
And the semiconductor industry is notoriously risk averse. Who wants to idle a $10B foundry if an oversupply condition arises?
For sure the RAMpocalyse is going to get worse over the next few years. No one has a crystal ball that will predict when the supply-demand balance will plateau. Apple can't just sell nothing for five years.
My hunch is that the RAMpocalyse will drive many smaller manufacturers towards failure, particularly those servicing the low end of the consumer market.
Also, while setting up that red herring, you also need to figure the cost per device for R+D costs of each generation, the cost of 8+ years of software support, and advertising costs, all of which are taking chunks of every iPhone made.Gee, I wonder why you keep seeing news about one of the largest phone makers on earth, tied up with Samsung for the #1 spot. Real difficult question, that one. /S
Better question: why do you click on, read, and comment on apple posts if you don't care for apple?That old dram isn't useful on new devices. In case you didn't know, memory specs advance with time.
And that memory is packed on the SoC under the CPU core. Do you have any understanding of how incredibly difficult it would be to recover usable DRAM from that, let alone at any sort of scale?
Loads of companies making their own inferencing hardware and other AI chips.
Apple is a lifestyle brand, the only way they will shed value is if the rest of the world bans American tech
Apple pays Arm less than 30 cents per chip in royalties, new report says
Because at least with DRAM or NAND, in previous cycles, you could get absolute dirt cheap memory or storage but every RAM/SSD upgrade with Apple still costs you anywhere between 4-10x normal prices!
Smaller companies will get roasted, though...