Apple Is Losing Its Negotiation Prowess For DRAM Chips To Hyperscalers; New Goal Titled Towards Securing Supply, Not Getting The Best Prices Omar Sohail • at EDT Add on Google Who would have thought that Apple would be the one to get usurped / Image credits - iFixit The latest-generation DDR5 RAM has broken records thanks to being slapped with a 400+ percent premium in overseas markets, as supply has been gobbled up by massive hyperscalers. The future is looking far too grim as NVIDIA’s Rubin AI platform is expected to starve smartphone LPDDR supply like there’s no tomorrow. Seeing as how memory manufacturers are enjoying truckloads of profits by this demand shift, it also changes how they view Apple, a dominant force of nature when it comes to negotiation tactics, particularly for DRAM supply. Related Story DDR5 Memory Continues To Sell At A Whopping 400%+ Premium In Germany As The Market Sees No ReliefLooking at the current situation, the iPhone maker’s priorities have also changed as it’s no longer prioritizing getting the cheapest DRAM prices for a number of its products, but rather how much supply it can get its hands on. Before the AI boom, Apple could choose to halt DRAM supply depending on the supply, without facing any repercussions It’s no secret that Apple commands immense influence on component suppliers and strong-arms its way into getting an adequate shipment of parts at the best possible prices. After all, the sheer volume of the company’s iPhones and other devices greatly determines how far Apple can push its supply chain into providing it with the best rates. Unfortunately, the Cupertino firm’s seemingly invulnerable position has been compromised as AI datacenters have transformed into insane money makers for manufacturers like Samsung and SK hynix. Even though both companies don’t on their business dealings with memory customers, Apple CEO Tim Cook commented during the previous earnings call that the company’s DRAM supply is slowly dwindling, leading to a possible price hike in the future. Before hyperscalers entered the picture, an anonymous semiconductor industry commented that Apple’s contracts weren’t as legally binding as they are now. In fact, the technology titan could effortlessly choose to breach an agreement during its one-year term, and it would suffer no consequences. Now, stricter contracts for long-term DRAM supply are reaching up to five years, making it difficult for Apple and others to break them. “Before the AI era, long-term supply agreements were not binding or as lengthy as the ones that are being contracted now. Back then, big buyers like Apple held the power. Even when contracts spanned a year at most, there were no penalties if they chose not to fulfill their end of the bargain. The agreements were signed on the basis of trust.” Thanks to the DRAM crisis, Apple’s objectives have completely changed. From focusing solely on getting the best prices, the company has shifted its focus to scrambling to acquire as much supply as possible. Kim Rok-ho, analyst at Hana Securities, has stated that when NVIDIA’s Rubin AI platform begins shipping in Q4 2026, that’s when competition for LPDDR supply will intensify. As for prices, there appears to be no direction but up. News Source: Korea Joongang Daily About the : Omar Sohail is a and analyst for 's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology. Follow on Google to get more of our news coverage in your feeds. Further Reading Intel Core 7 350 Closes The Gap On Apple A19 Pro In PassMark Debut, Beating It In Multi-Thread, While Losing Single-Core By 18% Intel’s First Wildcat Lake Laptop Hits Retail at sub-$600, Undercutting Apple’s MacBook Neo, Doubles the RAM and Battery Capacity NVIDIA’s Rubin AI Platform Alone Will Devour More LPDDR Memory in 2027 Than Apple and Samsung Combined, Starving Smartphone Supply iPhone Fold’s Trial Manufacturing Run Is Producing Subpar Results, But These Setbacks Have Little To Do With Apple’s “Crease Free” Display Read all on Apple Is Losing Its Negotiation Prowess For DRAM Chips To Hyperscalers; New Goal Titled Towards Securing Supply, Not Getting The Best Prices
