Apple wants Trump approval to buy Chinese RAM chips after price hikes
Apple is reportedly asking the Trump administration to allow it to buy memory chips from a blacklisted Chinese company after raising prices of Macs and iPads. The move is aimed at easing pressure from soaring memory chip costs and the ongoing global supply shortage.
Apple is reportedly trying to secure permission from the Trump administration to buy memory chips from a Chinese company that has been placed on a US blacklist. The move comes just days after the company increased the prices of several products, with Apple saying that rising memory and storage chip costs left it with little choice.
According to a report by the Financial Times, Apple has been lobbying the White House to allow it to source memory chips from Chinese chipmaker CXMT. The company believes access to these chips could help reduce the financial pressure created by the ongoing global memory shortage and keep production running smoothly.
The Financial Times, citing six people familiar with the matter, reported that Apple has been seeking clearance to purchase memory chips from CXMT. The company is currently on the Pentagon's Chinese Military Company blacklist because of its alleged links to the People's Liberation Army (PLA).
The report says Apple first contacted the US Commerce Department about a month ago and has since stepped up its efforts to obtain approval from the Trump administration.
While Apple is not legally banned from buying chips from CXMT or another Chinese memory company, YMTC, the situation is far from straightforward. Both companies appear on the Pentagon's blacklist, which includes Chinese firms that the US government says have connections to China's military. Because of national security rules, American companies would likely need government approval before working with such suppliers.
Price hikes may have pushed Apple to look for alternatives
Apple's reported lobbying effort comes shortly after it increased the prices of several Macs and iPads. The company said the decision was driven by rising costs of memory and storage components.
Last week, Apple CEO Tim Cook also addressed the issue in an interview with The Wall Street Journal. Explaining the recent price increases, Cook said Apple did not have many options because of the higher component costs.
During the interview, Cook also hinted that Apple would be open to sourcing memory chips from Chinese companies if regulations allowed it.
"I think everything needs to be on the table," Cook said, adding, "I think we should look at all supply."
That comment now appears to match Apple's reported efforts behind the scenes. According to the Financial Times, the company is actively trying to convince US officials to approve purchases from Chinese suppliers as it looks for ways to reduce costs and maintain product manufacturing during the global memory supply crunch.
Apple is reportedly trying to secure permission from the Trump administration to buy memory chips from a Chinese company that has been placed on a US blacklist. The move comes just days after the company increased the prices of several products, with Apple saying that rising memory and storage chip costs left it with little choice.
According to a report by the Financial Times, Apple has been lobbying the White House to allow it to source memory chips from Chinese chipmaker CXMT. The company believes access to these chips could help reduce the financial pressure created by the ongoing global memory shortage and keep production running smoothly.
The Financial Times, citing six people familiar with the matter, reported that Apple has been seeking clearance to purchase memory chips from CXMT. The company is currently on the Pentagon's Chinese Military Company blacklist because of its alleged links to the People's Liberation Army (PLA).
The report says Apple first contacted the US Commerce Department about a month ago and has since stepped up its efforts to obtain approval from the Trump administration.
While Apple is not legally banned from buying chips from CXMT or another Chinese memory company, YMTC, the situation is far from straightforward. Both companies appear on the Pentagon's blacklist, which includes Chinese firms that the US government says have connections to China's military. Because of national security rules, American companies would likely need government approval before working with such suppliers.
Price hikes may have pushed Apple to look for alternatives
Apple's reported lobbying effort comes shortly after it increased the prices of several Macs and iPads. The company said the decision was driven by rising costs of memory and storage components.
Last week, Apple CEO Tim Cook also addressed the issue in an interview with The Wall Street Journal. Explaining the recent price increases, Cook said Apple did not have many options because of the higher component costs.
During the interview, Cook also hinted that Apple would be open to sourcing memory chips from Chinese companies if regulations allowed it.
"I think everything needs to be on the table," Cook said, adding, "I think we should look at all supply."
That comment now appears to match Apple's reported efforts behind the scenes. According to the Financial Times, the company is actively trying to convince US officials to approve purchases from Chinese suppliers as it looks for ways to reduce costs and maintain product manufacturing during the global memory supply crunch.
