Apple Struggles to Secure RAM Supply for the iPhone 18 After Chinese Supplier Refuses Price Cuts
Apple is making the final preparations for the launch of the iPhone 18 series and the foldable model believed to be called the iPhone Ultra. With less than six weeks remaining before the expected announcement, the company and its manufacturing partners are facing difficulties securing enough RAM. Strong global demand and a shortage of components have increased delivery times for mobile DRAM chips.
To reduce pressure on its supply chain and lower manufacturing costs, Apple tried to negotiate the purchase of LPDDR5X memory from Chinese manufacturer CXMT. The company hoped its large order volume would help secure discounted prices. However, CXMT refused to lower its prices and insisted on charging standard market rates.
The main reason for CXMT’s decision is strong demand within China. Chinese technology companies, including smartphone makers such as Huawei and Xiaomi, along with artificial intelligence companies and data centers, have already reserved much of the manufacturer’s production through long-term contracts. With its production already sold at market prices, CXMT had no reason to accept Apple’s request for discounts.
Chinese Supplier Refuses Apple’s Request for Lower RAM Prices
Apple normally relies on Micron as its main supplier of LPDDR5X memory, while also buying chips from SK hynix and Samsung. Its usual strategy of using multiple suppliers to negotiate lower prices has not worked this time. Tight supply has changed the balance of power in semiconductor negotiations.
The shortage of standard memory such as DDR5 and LPDDR5X is linked to a wider shift across the industry. Major manufacturers have moved part of their wafer capacity and production lines to HBM (High Bandwidth Memory) used in AI servers and accelerators. This change has even contributed to well-known memory brands disappearing from the market, including Crucial.
Lower production of conventional memory has pushed global prices higher. At the same time, demand from the Chinese market has reduced the availability of low-cost memory from CXMT. As a result, the world’s leading semiconductor manufacturers continue to hold a strong position during contract negotiations for the second half of the year.
With the launch approaching in the coming weeks, assembly plants are working to coordinate deliveries of the remaining components. Supply contract negotiations will continue to play an important role in determining how much initial inventory will be available for Apple’s upcoming smartphones.
