Apple is seeking to secure a supply of memory chips for the iPhone 18 Pro amid a DRAM shortage, raising concerns that the device's price will increase significantly.
According to a report from the Wall Street Journal, Apple is working to expand its memory supply for its products, including iPhones and MacBooks, by testing DRAM memory from Chinese manufacturer CXMT. The report states that the company has held preliminary talks with CXMT to provide memory for some devices sold in China. However, Apple is also seeking support from the US government before taking further steps.
The iPhone 18 Pro is facing significant pressure regarding its DRAM supply.
The iPhone 18 Pro is facing significant pressure regarding its DRAM supply.
This is considered a particularly critical time, as the DRAM shortage could slow down the production of the A20 Pro chip, which is expected to be in the iPhone 18 Pro. TSMC, the leading chip manufacturer, currently has approximately $1 billion worth of finished chips awaiting memory installation before packaging can resume.
Although Apple approached CXMT hoping to find a cheaper source of DRAM, negotiations did not go as expected. CXMT quoted prices that were comparable to, or even higher than, those of competitors like Samsung and SK Hynix. Furthermore, Huawei, Xiaomi, and other Chinese manufacturers had signed long-term agreements with CXMT, leaving the company with no reason to lower prices for Apple.
If this information is accurate, Apple may have abandoned the idea of sourcing cheaper DRAM to focus on securing enough memory for the iPhone 18 Pro launch this fall. However, using memory from CXMT remains a challenge, especially given the tense relations between the US and China.
CXMT refuses to lower prices, even though Apple is a name many companies want to partner with.
CXMT refuses to lower prices, even though Apple is a name many companies want to partner with.
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Regardless of the additional cost to CXMT, Apple still needs political approval before incorporating components from the Chinese supplier into its products.
Amid rising component costs, Apple has increased prices on some Mac and iPad models. While iPhones haven't been affected yet, the iPhone 18 Pro could be next. Some analysts predict the iPhone 18 Pro Max could see a price increase of around $200 to $300, while the iPhone 18 Pro could also see a similar increase.
To support customers, Apple introduced a new leasing program called Apple Upgrade, allowing users to upgrade to a new iPhone without paying the full price upfront. If Apple is turning to CXMT simply to secure enough DRAM for the fall launch, maintaining iPhone 18 Pro production may be a top priority over keeping prices low.