- Analyst Ming-Chi Kuo has added to the prevailing pessimism around the RAM crisis
- Of RAM destined for consumer electronics in 2026, an “estimated 15 – 20% is expected to shift to data centers in 2027, and that share could grow”
- Apple is trying to maneuver to use a big Chinese chip maker to shore up its RAM supply lines, we’re told
Another negative sentiment has been aired about the RAM crisis, as a prominent leaker and analyst has underlined that data centers will consume even more consumer memory supply next year – and that Apple may look to China for help shoring up its RAM stocks.
Wccftech flagged that Ming-Chi Kuo posted on X, noting: “Of the memory capacity allocated to consumer electronics in 2026, an estimated 15 – 20% is expected to shift to data centers in 2027, and that share could grow.”
This is part of a picture that Kuo paints, where Apple is not just worried about the cost of memory but, more specifically, the lack of memory supply, with LPDDR5 (low-power RAM for mobiles and laptops) dwindling substantially.
Kuo notes that this is the “real reason Apple is lobbying the White House to keep CXMT off the Entity List”, meaning that in order to keep enough supply flowing, Tim Cook is trying to persuade the US government to allow Apple to use RAM made by the Chinese chip manufacturing giant CXMT.
In short, this isn’t about pricing as such, but about “managing DRAM supply risk” in light of whatever future shipment targets Apple has for its products, whether Macs, iPhones, iPads, or anything else.
Analysis: calling the cavalry?
At the very start of the year, we were hearing about how much RAM supply data centers (and AI therein) are set to gobble up in 2026, and things aren’t going to get any better for the consumer in 2027. Not if Kuo is right and something like 20% (or more) of the memory supply for consumer electronics is redirected to data centers next year. It’s a worrying thought indeed, and represents an unwelcome notion of ever-increasing prices for anything that has memory inside it, from phones to PCs.
Apple is apparently trying to act to fend off the worst of the impact on its products, following its recent price hikes, and interestingly Kuo thinks that Tim Cook is very much the CEO for the job, and that this isn’t a task that John Ternus, who will take the reins of Apple later this year, should be charged with.
Kuo observes: “Tim Cook is one of the few tech leaders who can still navigate both Washington and Beijing, so this is better handled before he steps down as CEO. Even if the effort goes nowhere, the media coverage can still leave the market with the impression that Apple tried but was constrained by U.S. policy. That may help ease frustration over price hikes and longer delivery times.”
As for Apple’s would-be Chinese chip-making savior, others have cautioned against relying on RAM from China to ease the current memory crisis. While Kuo points out that “CXMT states in its IPO prospectus that its capacity is far below domestic demand”, meaning there’s available supply to pipe through to the likes of Apple or other Western tech giants, that may not be the case in the future.
And as the VP of a firm that makes SSD controllers recently made clear, the Chinese government has a considerable amount of leverage over CXMT and other major memory chip makers in the country – and if the RAM crisis worsens, there may not be so much supply to be sold abroad (even if that’d be more profitable for the companies involved).
It’s a complicated situation to navigate, of course, but as Kuo also touches on, this could be about Apple wanting to be seen to do something. Cook may fully realize that CXMT may not be the knight in shining armor coming to Apple’s rescue, but even if it isn’t, at least he’s been seen making efforts to call for the cavalry.
Ultimately, with all the bleak predictions around of late – including Lenovo’s assertion that RAM prices are ‘never’ coming back down and we’re in a world of a ‘new normal’ for memory costs – it’s difficult to believe that Apple has much room to maneuver in keeping a firm lid on the MSRPs of its Macs or other products going forward.
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