How the tables appear to have turned for Apple, which used to command absolute obeisance from its supply chain, leading to obscene margins, but now finds itself displaced by the AI hyperscalers in the supply chain hierarchy, and so starts calling for aid from the Chinese. Cue in the idiom: how the mighty have fallen.
Apple's envisioned CXMT-led salvation is an illustration of its still-intact hubris
Back in 2023/2024, Apple typically paid around $17 for an 8GB LPDDR5X RAM, and another $22 for a 256GB flash storage module, netting out the total memory-related costs to $39.
At the time, Apple used to charge around $99 for upgrading to the next storage tier, earning a veritable windfall on these pricing dynamics.
For the upcoming iPhone 18 Pro, however, Apple will pay around $145 for a 12GB DRAM, which equates to $12 for every 1GB of DRAM or $96 for an 8GB DRAM module. It will also pay $51 for a 256GB flash storage module, bringing its total memory-related costs to $196.
This means that Apple's margin-related gravy train on memory has ended for all practical purposes, which might explain its tangible panic right now, as illustrated by its across-the-board price hikes for Macs, iPads, and the Vision Pro, while also exhorting the Trump administration to unban China's DRAM giant, CXMT.
Ironically, even if the Trump administration caves in, CXMT might not represent a panacea for Apple, especially as China is now prioritizing its local AI buildout, which relegates Apple to a distant priority.
The quote in the above X post is NOT from Micron's CEO. Even so, it captures the crux of Apple's dilemma beautifully. In essence, Apple is not accustomed to being treated as a low-priority customer. Over the years, as its supply chain partners caved to even the most outlandish of its whims, it has built up a legendary hubristic streak, one that is now chomping at the bit.
Even as its earlier glory fades, Apple's hubris remains intact for now, as is apparent from its assumption that CXMT would jump when whistled. Those days might be gone for good now, and it's high time that Apple learns to live with its diminished importance in the tech world. Digging one's head into the ground ostritch-style is not the answer.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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