As Apple announced price increases for its products citing a surge in memory costs driven by artificial intelligence (AI), the global memory semiconductor industry has pushed back, claiming that Apple’s long-standing purchasing practices have contributed to the current supply shortage. Critics argue that the tech giant's aggressive buying tactics have backfired.
According to reports from industry sources on June 28, Apple has unexpectedly raised the prices of key products, including the MacBook and iPad, due to rising component costs. The price of the MacBook has increased by up to $300, while the iPad has seen a hike of $200. In the domestic market, the impact is even more pronounced, with the MacBook Pro and Air rising by 600,000 won and 400,000 won, respectively. Even the budget-friendly 'MacBook Neo' has jumped by 200,000 won, surpassing the 1 million won mark just months after its launch.
The sharp rise in memory prices, particularly DRAM and NAND flash, is largely attributed to a surge in investments in AI data centers. While Apple has historically leveraged its substantial purchasing power to negotiate favorable prices, the explosive demand for next-generation semiconductors has forced the company to raise its prices.
However, industry insiders argue that Apple is shifting the blame for the supply shortage onto others, despite having squeezed the supply chain for its own benefit for years during the AI transition. Sumit Sadana, Chief Business Officer of Micron, criticized major clients for demanding excessive price cuts from memory manufacturers, stating that this has hindered necessary production investments and led to the current severe supply shortage.
While Sadana did not name specific companies, many in the industry interpreted his comments as a direct critique of Apple’s aggressive procurement strategy. Reports from U.S. tech media suggest that Apple’s tactics have fostered intense competition among suppliers, driving down margins to the point where semiconductor manufacturers struggle to invest in future capacity.
Apple’s disruptive supply chain practices are not new. In 2010, the company, then a dominant force in the global mobile and IT markets, used its purchasing power to secure large pre-orders from major suppliers like Samsung Electronics, SK Hynix, and Micron under terms favorable to itself.
However, when Apple’s actual purchases fell short of expectations, DRAM prices plummeted by over 40% in the first half of that year, leading to significant profitability issues across the memory industry. This situation ultimately contributed to the bankruptcy of Elpida, Japan's last DRAM manufacturer.
An industry insider noted, "Unlike in the past, memory manufacturers now hold the supply leadership. As Apple loses control over the supply chain and the situation turns unfavorable, it is passing costs onto consumers while blaming others."
* This article has been translated by AI.
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