Apple (AAPL) Stock Eyes Chinese Memory Chips to Fight Rising Costs
TLDR
- Apple is testing memory chips from China’s CXMT for use in iPhones and MacBooks
- Apple is seeking White House approval before any deal with CXMT can move forward
- Federal rules block tech-sharing with CXMT, limiting Apple to off-the-shelf purchases only
- Apple stock trades at $313.33, with a consensus “Moderate Buy” rating and $330.44 price target
- Apple reported Q3 revenue of $109.42 billion, up 16.4% year over year, beating estimates
Apple is quietly testing memory chips from Chinese manufacturer CXMT for potential use in iPhones and MacBooks, according to a Wall Street Journal report published Sunday.
The company is in early talks with CXMT about a supply arrangement, but is waiting for White House sign-off before anything moves forward.
Apple’s interest in CXMT comes down to cost. Rising memory prices, driven by heavy AI demand, have pushed the company to raise product prices worldwide. A Chinese supplier could give Apple more pricing leverage.
Federal export rules create a hard limit on how far that relationship can go. U.S. companies are barred from sharing technology with CXMT, which rules out the kind of custom chip development Apple typically does with suppliers like Micron, SK Hynix and Samsung.
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