Report: Apple in talks to source memory chips from China

Report: Apple in talks to source memory chips from China
Up until now, no Chinese company has manufactured memory chips. This is about to change, according to a report published today by Japan's Nikkei news agency.  A company called Yangtze Memory is scheduled to start producing NAND flash chips sometime this year, and Apple is reportedly in talks with the company to provide the chips for the Apple iPhone. While the chips could be available to Apple as soon as 2019, Yangtze might not be able to produce enough product to satisfy Apple's needs until 2020.

Currently, Apple buys NAND flash chips from companies such as Toshiba, Western Digital, SK Hynix and Samsung Electronics. Apple happens to be the largest purchaser of  these chips worldwide, and was responsible for 15% of the 200 million GB of demand for the component seen last year. Adding a new source for its NAND flash chips will allow Apple to negotiate better pricing with its current suppliers. The NAND flash chip is one of the most expensive components to be found inside an iPhone.

If Apple does sign a pact with Yangtze, the latter could go from being an unknown name to a major player in the industry. According to Sean Yang, an analyst with Shanghai based researcher CINNO, Apple will help Yangtze improve the quality of its NAND flash chip in order to meet Apple's standards. The iPhone manufacturer will also help the chip maker increase the capacity of its assembly lines. This could be a win-win for Apple and China. The former gains another source of an expensive component giving it some leverage over pricing, and China adds the capability to produce memory chips domestically.

source: Nikkei

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17 Comments

1. Hollowmost

Posts: 424; Member since: Oct 10, 2017

They are looking for cheaper components ... But will the next iPhone costs less ??? Lol

2. Medoogalaxy

Posts: 232; Member since: May 25, 2017

All iPhone component are the cheapest in the market, that's why I never thought of buying Iphones, im smart not be fooled by marketing and paid reviews. Take this lists here you can see the difference between quality and lack of quality:https://www.inquisitr.com/3747881/research-says-samsung-galaxy-s7-edge-safest-smartphone-iphone-7-one-of-the-worst/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheInquisitrTechnology+%28The+Inquisitr+»+Technology%29

6. monkeyb

Posts: 413; Member since: Jan 17, 2018

And why should any company (even Samsung or Google) reduce their product price because they negotiated a better raw materials price? Especially if the demand is still high. Im sure every shareholder or analyst will call a company stupid if they get into charity mode (In this case giving a discount when customers "want" it but don't really "need" it).

9. DolmioMan

Posts: 334; Member since: Jan 08, 2018

Lol... you really take that article seriously and believe it’s about build quality? I just read it and they go on one metric, SAR and the iPhone conforms with the FCC maximum allowance. Nothing to do with build quality.

10. rouyal

Posts: 1583; Member since: Jan 05, 2018

“that’s why I never thought of buying IPhones” Which renders your opinion baseless. I use both android and iPhones, and iPhones are very well built from component to fit and finish. Why do you think many people say they wish they had an “iPhone that runs android”

13. cmdacos

Posts: 4252; Member since: Nov 01, 2016

Less crashes I would guess

3. Khyron

Posts: 398; Member since: Sep 28, 2015

and all the iPhones price will jump above $1000 Next year

5. CreeDiddy

Posts: 2240; Member since: Nov 04, 2011

The 7, 8, and will remain under $700. The iPhone 6.1 will be $799 The X will be discontinued The Xs and Xs Plus will be the only phones over $1000...Not sure how all iPhones will be over $1000...

11. Anonymous.

Posts: 423; Member since: Jun 15, 2016

"The iPhone 6.1 will be $799" iPhone 6.1? Wow.

7. sissy246

Posts: 7124; Member since: Mar 04, 2015

It won't just be apple to go up. ALL will keep going up as long as we keep paying.

8. darkkjedii

Posts: 31269; Member since: Feb 05, 2011

Well said sis, this isn’t just an Apple thing. If we don’t speak with our wallets, this will continue. I’m gonna skip 2018, if I don’t truly get blown away by the Note 9.

4. michaelny2001

Posts: 334; Member since: Aug 01, 2012

Apple will help Yangtze improve the quality of its NAND flash chip in order to meet Apple's standards i thought it was the other way around. You're good first and then Apple would come to you. I guess it's cheaper to train them and have them prodcue your chips, then to go bu from an established company like Samsung or Qualcomm for a higher rate. ok. we'll see.

12. Anonymous.

Posts: 423; Member since: Jun 15, 2016

"Apple will help Yangtze improve the quality of its NAND flash chip in order to meet Apple's standards" To do that, Apple would have to invest heavily in Yangtze Memory for the quality to be up to par with industry leaders, and that would end up costing Apple more money than if they were to just continue buying the memory chips from the well established brands they currently buy from... Doubt Apple would do that, considering the fact that Apple loves cutting corners to save cost. Is this author for real? Lol.

14. mootu

Posts: 1527; Member since: Mar 16, 2017

They do though, they have invested $2.67 billion in LG's Oled panels. They invest and then demand components at rock bottom prices, over a few years it adds up to savings.

15. Ghost04

Posts: 522; Member since: May 03, 2014

If Chinese phones contain spyware then Chinese parts will also contain them. So, Apple should use "MADE IN AMERICA" parts and manufacture iphones in AMERICA only .

17. Sammy_DEVIL737

Posts: 1529; Member since: Nov 28, 2016

Apple can make iPhone in America but it will rise the cost of the device as making components in China is cheap to manufacture. It's like cheap components more profit.

16. raky_b

Posts: 409; Member since: Jul 02, 2014

Nook....isn't China spying on US citizens!? And Apple is dumb enough to buy their chips????

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