Against the background of the sharp surge in global memory chip prices, Apple is operating in Washington with a rare high profile, hoping to persuade the current US government to open a "special approval channel" to China's Changxin Memory (CXMT) to alleviate the severe cost pressure faced by the new generation iPhone 18 Pro. The report pointed out that if low-cost DRAM supply from CXMT cannot be obtained, the memory cost of iPhone 18 Pro may triple compared with the previous generation, severely squeezing product profit margins.
According to the Financial Times, Apple has officially begun lobbying the Trump administration to seek permission to purchase memory chips on a large scale from CXMT, which is still blacklisted by the Pentagon. Due to compliance considerations, Apple has not only contacted the U.S. Department of Commerce, but is also actively mobilizing other officials and allies in Washington to gain support for this exception. CXMT was blacklisted primarily due to its alleged ties to the People's Liberation Army of China, making any procurement requests from U.S. companies highly sensitive and fraught with political risk.
The reason for taking political risks lies in the "storage cost crisis" Apple is currently experiencing. Apple has recently implemented significant price increases on its Mac and iPad product lines, and has publicly pointed the finger at a historically rare storage price squeeze. CEO Cook recently said in an interview with the Wall Street Journal that the current surge in memory prices is "unprecedented" in his more than 40-year career, and will almost inevitably be transmitted to end product prices.
According to market data, the contract price of 12GB LPDDR5X has increased approximately three times since the first quarter of 2025, hovering around US$120 at the end of the first and second quarters of 2026, and has further increased by US$68.8 since this year, and has recently approached a high of US$145 per unit. The price of superimposed flash memory storage is rising simultaneously, and the material cost of the whole machine is being significantly pushed up by the combination of memory and storage. Taking the 256GB iPhone 17 Pro as an example, memory and flash memory will only account for about 9% of its bill of materials (BOM) in 2025. On the 256GB iPhone 18 Pro, which is expected to be released this year, these two cost ratios are expected to soar to 27%.
Against this background, the three major memory giants Samsung, SK Hynix and Micron have a firm control over the supply of high-end DRAM and have strong bargaining power, putting Apple at a clear disadvantage in negotiations. According to reports, Apple’s move to CXMT is essentially hoping to introduce new powerful suppliers and break the price dominance of the “Big Three” on high-end mobile DRAM, thus reshaping the supply pattern.
For Apple, CXMT is almost the only alternative option currently capable of “firefighting”. The company is expanding production on a large scale and its monthly production capacity is expected to increase from about 200,000 wafers currently to 300,000 wafers by the end of this year. Even if CXMT cannot fully cover all of Apple's memory needs, as long as it can partially enter Apple's supply chain, Apple is expected to use this to raise its bargaining chip in negotiations with Samsung, SK Hynix and Micron and strive for more favorable price conditions.
Industry insiders analyze that if the Trump administration finally agrees to give Apple the green light to purchase DRAM from CXMT, China's role in Apple's supply system will show clear signs of reversal. The report also pointed out that once CXMT opens a gap, Chinese storage giant Yangtze River Storage (YMTC) is also likely to re-enter Apple's supply system and copy a similar path in the field of flash memory, which will significantly increase the presence of Chinese manufacturers in Apple's logistics and supply chain.
However, this series of actions also means that Apple must make a difficult balance between commercial interests and geopolitical risks. On the one hand, if the pressure of skyrocketing storage prices cannot be alleviated, Apple may have to continue to push up terminal prices in multiple product lines such as iPhone, Mac, and iPad, subject to dual pressures from consumers and regulators; on the other hand, seeking exceptions for Chinese companies within the U.S. export control framework will inevitably lead to U.S. political circles and public opinion questioning Apple's "side" and risk appetite. At a time when competition between AI and high-end mobile devices is intensifying, Apple's offensive and defensive battle in Washington over CXMT is no longer just a simple supply chain issue, but a high-risk strategic bet.