Senators Demand Apple Commit to Not Buying Chinese Memory Chips
Senators say Chinese suppliers tied to military concerns could leave Apple dependent on critical parts as memory prices climb and margins come under pressure.
- Apple reports fiscal 2026 third-quarter earnings today, with investors scrutinizing how CEO Tim Cook manages industry-wide memory shortages and management's forward guidance on gross margins.
- Rising memory prices directly increase Apple's cost of goods sold, pressuring margins as analysts at Jefferies expect profit margins on each iPhone 17 to drop by 4 to 9 percentage points.
- While CEO Tim Cook previously warned that hikes were "unavoidable," Goldman Sachs argues that price increases "reinforce longer-term earnings growth" because the user base remains relatively price inelastic.
- Apple's services business, which includes the App Store and Apple Music, acts as a hedge against hardware pressure by generating durable revenue that offsets demand destruction.
- Driven by AI, Apple stock reached a $5 trillion market cap on Tuesday, though analysts warn that AAPL "will likely struggle to balance between and margin" ahead.
21 Articles
21 Articles
Senators Press Apple to Rule Out Using Memory From Chinese Military Companies
A bipartisan group of seven senators is pressing Apple to rule out using memory from two companies designated by the Pentagon as Chinese military companies, citing reports that Apple was testing chips from one of the suppliers and seeking federal clearance to buy them. Sens. Jim Banks (R-Ind.) and Chuck Schumer (D-N.Y.) led the lawmakers in writing a July 29 letter to Apple CEO Tim Cook, urging the company to abandon any effort to use memory mad…
Senators' letter to Apple CEO on Chinese memory chips
Thursday, July 30, 2026In a July 29, 2026 letter to Apple CEO Tim Cook, Sens. Jim Banks (R-IN) and Chuck Schumer (D-NY) urging the company to commit that no memory chips produced by Chinese military-linked companies ChangXin Memory Technologies (CXMT) or Yangtze Memory Technologies Co (YMTC) will be used in any Apple product sold anywhere in the world. Featured: Related Documents Tags: businessinternationalsupply chainCongressDocument Type: Insi…
Senators warn Apple off Chinese memory chips
Apple wants to buy cheap memory chips from China to ease a shortage. That shortage is already pushing up the price of its gadgets. A bipartisan group of US senators has just told Tim Cook not to. The senators wrote to Cook, urging Apple to drop any plan to buy Chinese memory. The two suppliers […] This story continues at The Next Web
Senators Demand Apple Commit to Not Buying Chinese Memory Chips
U.S. Senator Chuck Schumer has teamed up with several of his Senate colleagues to demand Apple commit to not purchasing chips from Chinese companies ChangXin Memory Technologies (CXMT) or Yangtze Memory Technologies Co. (YMTC). [PDF] With memory shortages causing Apple to raise the prices of Macs and iPads, the company has been talking with CXMT and YMTC about a chip deal.
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