Apple Is in Talks with Chinese Companies to Supply Memory Chips for the iPhone

This article examines Apple Is in Talks with Chinese Companies to Supply Memory Chips for the iPhone. It presents the main facts, practical implications, and key points in a clearer, easier-to-follow format.

Understanding Apple Is in Talks with Chinese Companies to Supply Memory Chips for

So far, no Chinese company has produced memory chips. According to a report published by Japan's Nikkei news agency, this is about to change. A company called Yangtze Memory is expected to start producing NAND flash chips this year and Apple is in talks with the company to supply chips for Apple's iPhone. Although the company can supply chips to Apple next year (2019), it still cannot produce enough products to meet Apple's needs until 2020.

Currently, Apple is buying NAND flash chips from companies like Toshiba, Western Digital, SK Hynix and Samsung Electronics. Apple is the largest chip purchasing company worldwide, accounting for 15% of the 200 million GB of memory compared to global demand last year.

NAND flash chips are one of the most expensive components inside iPhone products. Adding a new supply of NAND flash chips will help Apple better negotiate chip prices with existing suppliers.

If Apple signed a contract with Yangtze Memory, the company could become a new name in this industry. According to Sean Yang, an analyst at CINNO in Shanghai, Apple will help Yangtze Memory improve the quality of its NAND flash chips to meet Apple's standards. The iPhone maker will also help chip makers increase the chip assembly line capacity. This may be a mutually beneficial partnership for Apple and China. Apple may negotiate a reduction in chip purchasing prices, thereby reducing the chances of lowering iPhone and Chinese prices, while increasing the likelihood of producing memory chips in the country.