Apple wants the iPhone to take over the world, no matter what it costs. | Image by PhoneArena
The tech industry is having trouble this year due to skyrocketing memory prices, with some companies scaling back operations and some even projected to go bankrupt. Amidst the chaos, Apple has been buying up supply at insane costs, something one semiconductor expert claims is a deliberate sabotage of its direct competitors.
Apple is scooping up DRAM
Previous reports have revealed that Apple agreed to massive price hikes from Samsung and SK Hynix for their memory modules, not even bothering to negotiate. Now, another fascinating claim from one industry expert makes it seem like this is all a grand play from the company.
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Want to hear something interesting? Apple is more aggressive this year than ever before. They're buying up all available mobile DRAM on the market at extremely high prices, even at the cost of operating profit losses. This isn't because Apple is being naive — they're deliberately…
Jukan argues that Apple is deliberately buying up all of the DRAM supply at insane costs, even if it means a financial loss for the short term. Doing so means that competitors will be priced out of the market and be unable to manufacture competent products of their own in sufficient supply.
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Apple might absorb some losses, but being able to make flagship smartphones in adequate quantities will help the company snatch even more market share around the globe. This is especially true now that Apple has made the mid-range iPhone 17e an annual release, as well as launching the very affordable and capable MacBook Neo.
How effective is Apple's strategy and will it help the company grow?
A very calculated play
The MacBook Neo is a departure from Apple's usual approach to laptops. | Image by Apple
If Apple’s strategy is indeed to price out most of the competition, then it is a very calculated move that could pay off great. The company is already threatening the Windows laptop and Chromebook markets with the aforementioned MacBook Neo and this will only give Apple even more control over the industry.
However, Apple will also have to play this while keeping current developments in mind. If memory shortages improve dramatically in a short period of time, the company will have absorbed big losses for no gain.
I’m somewhat skeptical
While Jukan’s claim is fascinating, I do have to advise you to take it with a very small grain of salt. Apple might very well be doing this, but it is equally as likely that the company just wants to secure supply for its upcoming products like the foldable iPhone.
Manufacturers that make budget smartphones can afford to decrease the amount of RAM or the refresh rates of their phones’ displays, but Apple can’t afford to give up its premium branding. The company would much rather absorb financial loss for a couple of years than lose customers due to not enough product supply or weaker hardware.
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Abdullah loves smartphones, Virtual Reality, and audio gear. Though he covers a wide range of news his favorite is always when he gets to talk about the newest VR venture or when Apple sets the industry ablaze with another phenomenal release.
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