China's largest DRAM manufacturer, CXMT (Changxin Memory Technologies), has reportedly rejected Apple's request for memory supply.
According to Chinese media outlet Jiemian on October 27, CXMT has decided not to provide a price for Apple's recent DRAM supply request. In August, Apple sought to purchase LPDDR5X memory for its next-generation iPhones, but negotiations over pricing fell through. Apple aimed for lower prices than those offered by Samsung, SK Hynix, and Micron, but CXMT maintained prices similar to or higher than those of its competitors.
If CXMT had supplied memory products to Apple, it would have significantly enhanced its brand value and recognized the quality of its products internationally. However, the primary reason for CXMT's refusal appears to be a lack of production capacity. Chinese smartphone manufacturers like Huawei and Xiaomi have secured production volumes through long-term supply contracts, leaving CXMT with limited capacity for additional orders. The global memory supply has also tightened due to the expansion of AI data centers, reducing the incentive for CXMT to lower prices to attract new customers. CXMT's DRAM is already integrated into the supply chains of Chinese smartphone brands such as Xiaomi, Honor, Oppo, and Vivo.
Analysts suggest that CXMT has determined it is more advantageous to maintain existing customer supply lines and protect profitability rather than accept Apple's price reduction demands. This is particularly crucial for CXMT, which needs to make significant investments in the development and production of advanced HBM technology.
However, since neither Apple nor CXMT has officially confirmed the specific conditions surrounding the failed negotiations, other factors beyond production capacity and pricing cannot be ruled out. This incident illustrates that the Chinese memory industry is moving beyond simply securing overseas customers through low prices and is now selecting customers and pricing based on its domestic foundation.
Meanwhile, market research firm Counterpoint Research reports that CXMT's global DRAM market share reached 10% in the second quarter of this year, making it the fourth-largest player worldwide.
* This article has been translated by AI.
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