Apple's demand for lower prices on LPDDR5X and other mobile DRAM from Chinese chipmaker CXMT has been rejected, South Korea's Digital Daily reports. The move was part of Apple's effort to cut component costs for its next-generation iPhone and smart devices. CXMT is keeping quotes at or above the levels offered by Samsung Electronics and SK Hynix, backed by long-term high-priced supply agreements with Huawei, Xiaomi and other Chinese manufacturers. The broader DRAM market is tightening: major vendors are shifting capacity to HBM, trimming output of commodity DDR5 and LPDDR5X and pushing prices higher, which erodes the long-standing strategy of using cheap Chinese components to cut procurement costs. CXMT's absorption of China's commodity DRAM demand also relieves Samsung and SK Hynix of pressure to clear low-margin inventory. Both Korean firms are now focusing on AI memory products including HBM4, LPCAMM2 and enterprise SSDs, strengthening their hand in long-term pricing talks with global tech companies in the second half.
Apple's demand for deeper price cuts on mobile DRAM from Chinese chipmaker CXMT has been rejected, according to South Korea's Digital Daily. The negotiations centered on pricing for LPDDR5X and other mobile memory chips, part of Apple's push to lower costs for its next-generation iPhone and smart devices.
CXMT is reportedly sticking to prices comparable to—or higher than—those quoted by Samsung Electronics and SK Hynix. The confidence comes from strong demand at home: Huawei, Xiaomi and other Chinese handset makers have signed high-priced long-term contracts to lock in CXMT's capacity, leaving the memory maker little reason to discount orders just to win Apple's business.
The broader DRAM market is tightening. As major memory vendors shift more production capacity to HBM, supply of commodity DRAM such as DDR5 and LPDDR5X is shrinking, and prices for those chips keep rising. That undercuts the long-standing strategy of global device makers relying on cheap Chinese components to keep procurement costs down. CXMT has also absorbed a large share of China's commodity DRAM demand, easing the pressure on Samsung and SK Hynix to clear low-margin inventory.
Both Korean companies are now concentrating resources on high-value AI memory products, including HBM4, LPCAMM2 and enterprise SSDs, and are gaining stronger bargaining power in long-term price negotiations with major global technology companies in the second half of the year.
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