Apple is considering incorporating China's Changxin Storage into its new supply chain, but has failed to drive down prices.
According to a report by the South Korean IT media outlet "Digital Daily," citing industry insiders, Apple had previously considered including China's Changxin Memory in its new supply chain to reduce costs. However, it is now facing resistance in negotiations to further lower procurement prices. Recently, Apple has been negotiating with Changxin Memory regarding the supply prices for mobile DRAM, such as LPDDR5X, to alleviate the manufacturing cost pressures for the next generation of iPhones and other smart devices, but its price reduction requests have been rejected. It is reported that Changxin Memory's quoted prices are even higher than those of Samsung Electronics and SK Hynix, or at least at a similar level. Apple, which used to have strong purchasing bargaining power in the consumer electronics market, is now encountering what can be described as hard nails with suppliers sticking to firm pricing. The reason Changxin Memory boldly refuses Apple's price reduction demands lies in the large-scale "stockpiling" by Chinese tech giants like Huawei and Xiaomi. In this context, Changxin Memory sees no need to actively lower prices and reduce profits to accommodate Apple's complex and stringent quality certification and price reduction demands. Analysts believe that the strong domestic demand in the Chinese market provides robust price support for Changxin Memory.
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