Micron Executive Ties Apple’s Low-Price Deals to 2023 Memory Investment Freeze
Updated
Updated · 9to5Mac · Jun 25
Micron Executive Ties Apple’s Low-Price Deals to 2023 Memory Investment Freeze
3 articles · Updated · 9to5Mac · Jun 25
Summary
Sumit Sadana said Micron and other memory makers cut back investment in 2023 after some customers pushed prices so low that Micron’s gross profits turned negative, helping set up today’s shortage.
Apple was not named, but the Micron executive’s remarks came after Tim Cook said the RAM crunch was forcing Apple to raise MacBook, iPad and other product prices because suppliers were passing through steep increases.
Micron argues those aggressive purchasing terms created an unsustainable market that discouraged new capacity, even though Apple’s long-term supply agreements had earlier helped shield it from rising memory costs better than rivals.
The comments followed Micron’s blockbuster fiscal third quarter—revenue jumped 346%, gross margin neared 85%, and its fourth-quarter forecast topped expectations—underscoring how sharply the market has swung from glut to shortage.