As Apple pushes to adopt DRAM from CXMT, China's largest DRAM manufacturer, analysts suggest this move is a strategic card to increase its bargaining power with major memory suppliers.

In a report released on July 4 (local time), Bank of America analyzed that it would be difficult for Apple to adopt CXMT's memory on a significant scale. The firm interpreted the move as a tactic to pressure major companies like Samsung Electronics and SK Hynix to lower unit prices in future supply contract negotiations.

The first reason cited is the persistent risk of U.S. government semiconductor sanctions against China, as CXMT is currently on the U.S. list of Chinese military companies.

In fact, Apple is reportedly lobbying the White House over this issue, and it is understood that CXMT DRAM would only be used for Apple products sold within China.

However, considering that the Chinese market shows a higher preference for high-end models like the iPhone Pro and Pro Max rather than budget-friendly iPhones, the actual order volume for CXMT, which is suitable for lower-end devices, is expected to be small.

Bank of America also pointed out that CXMT's quality must meet high-performance requirements.

Taking these factors into account, Bank of America concluded that Apple's engagement with CXMT is primarily a negotiation card to use against other memory suppliers.

This analysis is further supported by the fact that CXMT, which previously engaged in aggressive low-price tactics, is now selling products at prices not significantly different from global leaders, offering no particular price advantage to Apple.

According to SemiAnalysis, a U.S.-based semiconductor analysis firm, the average selling price of CXMT's DRAM in the first quarter of this year was only 5 to 10 percent lower than that of leading companies such as Samsung Electronics and SK Hynix.

As leading firms like Samsung Electronics and SK Hynix increase the production ratio of High Bandwidth Memory (HBM) and high-capacity server DRAM, the supply of general-purpose DRAM has relatively decreased.

Consequently, CXMT has also chosen a strategy of maximizing profits by meeting the increased demand for general-purpose DRAM rather than engaging in a price war.

Driven by this trend, CXMT has recently raised its global DRAM market share to around 8 percent, climbing to become the world's fourth-largest player.

Reported by Lee Hyeon-yeong | Video by Lee Ui-seon | Graphics by Lee Jeong-ju | Produced by SBS Digital News