Source: Fortune
Summary
Apple is seeking US approval to buy memory chips from ChangXin Memory Technologies Inc., a Chinese company on the Pentagon’s list of firms with alleged ties to the Chinese military. Apple wants guarantees that CXMT won’t be added to the US Entity List, which would impose licensing restrictions. The company has been lobbying officials in the commerce department and Trump administration. Apple recently raised prices for Macs, iPads, and other devices due to an unprecedented memory chip shortage.
Our Reading
The numbers tell one story.
Apple is trying to offset cost hikes caused by a memory chip shortage by raising prices. The company is seeking US approval to buy chips from a blacklisted Chinese company, ChangXin Memory Technologies Inc. The move comes as the tech industry faces a memory crunch, forcing companies to boost prices and reduce output. Apple’s price hike contributed to a selloff in global tech stocks, stoking concern that rising component costs will curb demand. The Pentagon restored CXMT to its list of companies with alleged ties to the Chinese military.
The ask for approval sounds like a quiet admission that the memory shortage is worse than expected.
Author: Evan Null
