Apple Tests China's CXMT Memory Chips as AI Boom Squeezes Supply
AAPL sits 43% above its 52-week low of $219.25.
Summary
Apple is testing memory chips from China's CXMT for iPhones and MacBooks, seeking alternative suppliers as AI-driven demand tightens global memory supply. The move follows recent price hikes on Macs and iPads due to rising memory costs, and comes amid a 19% drop in iPhone shipments in China. Analyst Ming-Chi Kuo warns Apple could face a 10-20% shortfall in A20 chips through early 2027, potentially impacting production. CXMT's capacity is already maxed out, prioritizing Chinese tech giants, so near-term relief may be limited. The potential use of Chinese chips also risks political scrutiny in Washington, where Apple has faced criticism over similar plans.
At the time of this announcement, AAPL was trading at $312.85 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.6T. The 52-week trading range was $219.25 to $344.57. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Benzinga.