Apple Explores New Memory Supply Partnerships
Apple is reportedly evaluating a potential collaboration with Chinese memory manufacturers Yangtze Memory Technologies Co. (YMTC) and Changxin Memory Technologies (CXMT) as it seeks to diversify its memory chip supply. This strategic move appears to be a response to the tough negotiation tactics employed by the major global memory suppliers, often referred to as the ‘big three’: SK hynix, Samsung, and Micron, alongside KIOXIA.
Memory Supply and Pricing Pressures
Currently, Apple relies heavily on Samsung Electronics for its DRAM needs, with Samsung providing approximately 60 percent of the DRAM used in the iPhone 17 series. SK hynix and Micron fill the remaining DRAM requirements. On the NAND flash storage side, Apple’s main suppliers are Samsung, SK hynix, and KIOXIA, the latter formerly known as Toshiba Memory.
Recent reports indicate that Apple has secured enough NAND supply to last through the first quarter of 2026. However, KIOXIA is expected to increase prices once a long-term NAND supply agreement is finalised. Meanwhile, Apple’s DRAM supply agreements currently cover only up to the first half of 2026, leaving some uncertainty for the latter part of the year.
TF Securities analyst Ming-Chi Kuo highlighted in January 2026 that Apple might absorb rising memory costs to maintain or even grow its market share amid the ongoing supply turmoil. Yet, this strategy could impact Apple’s already substantial profit margins, especially as the company now faces quarterly price negotiations rather than biannual ones.
Context and Challenges in the Memory Market
During Apple’s latest earnings call, CEO Tim Cook reassured investors that the company has arranged the necessary memory supplies and has various strategies to secure components, suggesting that the current supply disruptions are manageable. Nevertheless, Apple is confronting significant margin pressures. For example, KIOXIA has reportedly agreed to supply NAND chips at double the previous prices for the current quarter and insists on negotiating prices every quarter, complicating Apple’s plans for stable pricing on base storage options in the upcoming iPhone 18 range.
Chinese Memory Makers as a Strategic Lever
Against this backdrop, Apple’s potential partnership with YMTC and CXMT could provide it with crucial leverage in negotiations with the established memory giants. Chinese manufacturers are rapidly advancing their technology and production capabilities. CXMT, for instance, is on the verge of mass-producing HBM3 chips, signalling China’s growing scale in the memory sector. The gap between Chinese and Western companies in NAND technology is also narrowing, making them a more viable alternative for Apple.
However, this approach is not without risks. Earlier this year, both CXMT and YMTC were briefly added to the Pentagon’s ‘Restricted Companies’ list, reflecting geopolitical tensions that could complicate business dealings. Apple’s move to engage with these Chinese firms is a high-stakes gamble that could either ease supply constraints or introduce new challenges.
Looking Ahead
As Apple navigates these complex supply dynamics, its efforts to secure memory components from a broader range of suppliers will be critical to maintaining production schedules and controlling costs. The coming months will reveal whether partnerships with Chinese memory makers will become a significant part of Apple’s supply chain strategy or remain a negotiating tool against traditional suppliers.
Source: Digitimes