Apple's Strategy to Squeeze Samsung and Xiaomi, Willing to Cut Profits
Apple is striving to maintain control of the market and hinder its competitors amid the recent memory shortage issue. The tactic employed by the company is to buy up as much of the available DRAM stock in the market as possible.
A report from TF Securities analyst Ming Chi Kuo explains that Apple can absorb higher memory costs compared to raising device prices. This approach, he says, can allow Apple to expand its market share while the supply issues persist.
The report aligns with statements from a source based in South Korea. Apple is reported to have bought nearly all the DRAM available in the market as a way to restrict supplies for competitors, quoted from Tech Spot on Monday (6/4/2026).
The source explains that the purchases were made at very high prices. This effort continues despite Apple having to reduce its operational profits.
Tech Spot notes that if this report is true, it would be one of the most aggressive supply chain manoeuvres by the company in recent times.
Previously, Apple’s CEO Tim Cook had highlighted memory costs and the limited capacity of advanced nodes at TSMC, including for 3nm. He described this situation as a constraint for his company.
Reports indicate that the impact of this effort is beginning to be felt. MediaTek and Qualcomm are reportedly reducing shipments of 4nm mobile chips by 15-20 million units or 20,000-30,000 wafers.
This reduction is being carried out by the two companies due to rising memory costs, while demand is weakening. This slowdown is significant for smartphone manufacturers that rely on chip producers for mid-range and low-end devices, which are most affected by cost pressures.
Tech Spot also notes that Samsung has raised prices on versions with higher capacities. This has been done on several products, including the Galaxy S25 Edge, Galaxy Z Fold 7, and Galaxy Z Flip 7.
The South Korean giant has not disclosed those price increases for memory supplies. However, it forms part of the same tightening pattern since the beginning of this year.