Apple took a risk to solve a difficult problem

Discussions between Apple and memory chip manufacturers are still ongoing and no agreement has been finalized. Previously, the Financial Times also reported that Apple is looking to cooperate with CXMT and YMTC to be able to buy RAM at a lower cost.

The above information was released not long after Apple increased the prices of a series of its products including Mac, iPad and many other devices. The reason given by the company is the global shortage of memory chips, causing costs to rise.

"We have never seen component prices increase so much and so quickly. We have tried to protect our customers from price increases. However, the time has come for us to start increasing prices on some products, including iPad and Mac. We know this is not good news and we are working hard to find a solution," Apple said.

Chipmakers are focusing on chips for AI servers, making supply for consumer devices scarce. When demand exceeds supply, component prices become higher.

However, both CXMT and YMTC are on the US Department of Defense's blacklist. Even YMTC is on the blacklist of the US Department of Commerce. This prevents US companies from selling to companies on the list without an export license.

Bloomberg said Apple CEO Tim Cook spoke with officials from President Donald Trump's administration. Apple is said to have proposed using chips from these companies for devices sold in the Chinese market, to reduce supply pressure from other suppliers.

Some officials are said to oppose Apple importing chips from CXMT and YMTC. Therefore, it is unclear whether the negotiations will lead to any agreement or not. Previously, Apple tried to import memory chips from YMTC in 2022, but negotiations ended after the company received backlash.