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Apple does not hide that rising memory prices and problems with component availability are prompting the company to look for new suppliers. At a conference on its financial results the maker admitted it is still considering working with Chinese firms that produce DRAM and NAND memory. The declaration comes despite increasing pressure from US politicians. Some senators are openly opposed to such a move and are calling on Apple to abandon these plans. The company insists, however, that no final decision has been made yet. All options remain under review.
Apple looks for new memory suppliers and points to benefits for the supply chain
During a conference Apple said that the cost of purchasing memory is steadily increasing from one quarter to the next. The company admitted that in March it paid more for memory than at the end of last year, and that prices rose further in June. According to the manufacturer further price increases are also expected in September. In response to analysts' questions Apple confirmed that it is still considering sourcing memory from Chinese manufacturers CXMT and YMTC. The company believes such cooperation could chiefly improve the stability of component supplies. Apple also emphasises that its impact on prices remains difficult to determine conclusively. The manufacturer stresses, however, that it is assessing all available sources of supply. According to earlier media reports Apple is already testing DRAM produced by CXMT. There were also reports that the company is holding talks with the United States administration about possible approval to use those components. According to unofficial information memory from the Chinese manufacturers would be used only in devices sold on the Chinese market. Apple has not confirmed details of any potential implementation. For now the company limits itself to saying it is analysing all possible options.
Apple's plans meet criticism from US senators
The possibility of working with Chinese memory manufacturers is causing growing controversy in the United States. Some US senators have called on Apple to abandon plans involving CXMT and YMTC entirely. They are also seeking disclosure of any technological cooperation between the companies. According to reports, Apple is expected to present its position on the matter by 21 August. The opposition stems in part from security concerns and links between some Chinese firms and the country's military sector. Despite this, Apple did not indicate at the conference that it would change its approach. The company emphasises that it is exploring all options to improve memory availability. Rising component prices mean supply diversification 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 evaluating potential suppliers is ongoing.
Apple does not rule out using memory from Chinese manufacturers, although these plans have met with clear 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
