Apple's Price Pressure on CXMT for LPDDR5X Rejected! First Sign of Chinese Domestic DRAM Saying 'No Discounts for Apple Supply Chain'

According to recent foreign media reports, Apple has been negotiating with ChangXin Memory Technology (CXMT) over pricing for LPDDR5X and other mobile DRAM components to alleviate bill-of-materials (BOM) cost pressures for its next-generation iPhones and smart devices. Apple requested the usual 'Apple supply chain' discount precedent, but was directly rebuffed. CXMT insisted its quotations remain no lower than those of Samsung and SK Hynix, even matching or slightly exceeding them.

South Korea's Digital Daily reported that suppliers historically viewed entry into Apple's supply chain as a guarantee of stable orders for years, while removal often meant losses of billions of dollars—leaving little room for price negotiation. However, the explosive demand for AI servers and high-bandwidth memory (HBM) has rewritten the rules. Samsung and SK Hynix are shifting production capacity toward high-value AI memory, tightening supply for general-purpose DRAM.

Meanwhile, Huawei, Xiaomi, Tencent, Alibaba Cloud, and ByteDance have already locked in CXMT's capacity through long-term agreements (LTAs). The penetration rate of LPDDR5X among China's Android阵营 is rapidly increasing, meaning CXMT does not need to lower prices to secure Apple's orders.

In June, Apple had already raised iPad and Mac prices due to rising memory costs and reportedly lobbied Washington to approve the use of CXMT chips. Now, however, the price threshold has become a cost hurdle for Apple itself.

Production capacity is the source of CXMT's confidence. Its three 12-inch fabs in Hefei and Beijing produce between 280,000 and 300,000 wafers per month, with utilization rates above 95%. By year-end, output is expected to reach 350,000 wafers, approaching Micron’s 385,000 at the same time. The long-term target is 600,000 wafers, potentially surpassing Micron by around 2030.

ChangXin Technology listed on the Shanghai STAR Market (Sci-Tech Innovation Board) last Monday (July 27), soaring 465.82% on its debut, breaking the 3-trillion-yuan market cap to top the A-share market. On August 5, it closed at 54.30 yuan, with a market cap of 3.63 trillion yuan. In Q2 2024, it captured 7% of the global DRAM market share and achieved a 716% year-on-year revenue growth, making it the fastest-growing supplier on Counterpoint’s ranking.

The significance of this failed negotiation goes beyond a single order—it signals a shift in power. Chinese memory manufacturers have transitioned from 'begging for shares in the Apple supply chain' to 'prioritizing domestic AI and smartphone demand.' For the first time, Apple has encountered a Chinese domestic IDM that refuses to offer discounts on core components. As the consumer electronics price-up cycle overlaps with AI capital expenditure driving material competition, downstream brands must now accept that memory is no longer the easiest category to cut costs.