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Apple does not hide that rising memory prices and problems with component availability are pushing the company to look for new suppliers. During a conference on its financial results the manufacturer admitted it is still considering cooperation with Chinese companies producing DRAM and NAND memory. The statement comes despite growing pressure from US politicians. Some senators openly oppose such a move and are calling on Apple to abandon those plans. The company insists, however, that no final decision has been made yet. All options are still being analysed.
Apple seeks new memory suppliers and points to benefits for the supply chain
During the conference Apple said the costs of buying memory have been rising steadily quarter on quarter. The company admitted it paid more for memory in March than at the end of last year, and prices rose further in June. The maker expects another increase in costs in September. In response to analysts' questions, Apple confirmed it is still analysing the possibility of sourcing memory from Chinese manufacturers CXMT and YMTC. The company says such cooperation could mainly improve the stability of component supplies. Apple also notes that the impact on prices is hard to determine. The maker emphasises it is evaluating all available sources of supply. According to earlier media reports, Apple is already testing DRAM chips produced by CXMT. There were also reports that the company is in talks with the US administration about possible approval to use these components. Unofficially, memory from the Chinese manufacturers would be used only in devices sold on the Chinese market. Apple has not confirmed details about any potential rollout. For now the company limits itself to declaring it is analysing all possible options.
Apple's plans face criticism from US senators
The possibility of working with Chinese memory suppliers is drawing increasing controversy in the United States. Some US senators have called on Apple to completely abandon plans involving CXMT and YMTC. They are also seeking disclosure of any technological cooperation between the firms. According to reports, Apple is due to present its position on the matter by 21 August. The opposition stems in part from security concerns and links between some Chinese companies and the country's military sector. Despite this, Apple did not indicate a change in its approach during a conference. The company continues to emphasise that it is evaluating all options to improve the availability of memory chips. Rising component prices mean that diversification of supply is becoming increasingly important for the manufacturer. So far, however, Apple has not announced a final decision. More information may emerge in the coming months as talks with US authorities develop. The company currently maintains that the process of analysing potential suppliers is still ongoing.
Apple does not rule out using memory from Chinese manufacturers, although those plans are facing strong opposition from US politicians. For now the company emphasises that it is exploring all options to improve the supply chain and has not yet made a final decision.
Source: wccftech
