In what might well be the most significant statement from its latest earnings call, Apple has conceded that it's continuing to evaluate various memory sources, including Chinese vendors, despite the emerging strong opposition from the US lawmakers.
Apple gave two very important pointers on the ongoing memory dynamics in its latest earnings call. First, it said :
"We paid more for memory in the March quarter than the December quarter. We expected to pay significantly more in the June quarter than the March quarter. And that is what happened, it was partially offset by the benefit of carrying inventory. For September, we expect to pay even higher memory costs."
Next, when asked about its gambit to source DRAM from China's CXMT and NAND from YMTC, Apple responded :
"We're continuing to evaluate this in terms of the sources of supply. It would help us on the supply side and perhaps the pricing side. It's unclear on the pricing side, but it could help on the supply side. We're evaluating all options."
For the benefit of those who might not be aware, as per recent reports, Apple is apparently testing DRAM products from China's CXMT, hinting at a growing probability of the Chinese DRAM giant becoming a part of Apple's sprawling supply chain in the near future.
Financial Times reported recently that Apple had gone so far as to actively lobby the Trump administration for clearance to buy DRAM from CXMT , which remains on a Pentagon blacklist for its connections to China's People's Liberation Army.
Bloomberg's Mark Gurman has also chimed in recently, disclosing that Apple was working with the Trump administration to minimize any blowback in Washington if it does end up procuring memory resources from CXMT and YMTC for its products sold in China.
Do note that any memory Apple does end up procuring from Chinese vendors would only be used within its products sold in China. Even so, the Cupertino-based tech giant is attracting substantial pushback in Washington.
In fact, a group of lawmakers have now called on Apple to abandon its plans for China-sourced memory, going on to demand a commitment from Apple by August 21 that it would not pursue this course, while also asking for the full disclosure of any technical infirmation that the iPhone maker might have shared with CXMT and YMTC.
As per Apple's comments during the earnings call, however, it appears to have remained unmoved by the exhortations of US senators.
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