How can Apple deal with the memory shortage?
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Re: How can Apple deal with the memory shortage?
#2Our problem is lack of competition
Re: How can Apple deal with the memory shortage?
#3This reads like Apple fanfiction to me.
> But then Apple can negotiate on another basis and say, well, if you don’t do us a favor here and give us a better rate, then maybe we won’t work with you when all this settles down. You know things are going to settle down. These things are always cyclical. There’s never been a semiconductor boom that’s not followed by a semiconductor bust. Never. And they know it.
I have to think that the RAM suppliers wouldn't be that easy to intimidate with threats, since they know perfectly well how few alternatives Apple has. And they are also perfectly aware that Apple will play hardball with them when the market turns, regardless of whether they were nice to Apple now.
Re: How can Apple deal with the memory shortage?
#4Our problem is lack of competition
High prices for RAM should attract competition.
Re: How can Apple deal with the memory shortage?
#5Can't even find a ddr2 sodimm that's not a ripoff.
Re: How can Apple deal with the memory shortage?
#6This reads like Apple fanfiction to me. > But then Apple can negotiate on another basis and say, well, if you don’t do us a favor here and give us a better rate, then maybe we won’t work with you when all this settles down. You know things are going to settle down. These things are always cyclical. There’s never been a semiconductor boom that’s not followed by a semiconductor bust. Never. And they know it. I have to…
Apple bought PA Semi as the starting point to getting off of Intel. Theoretically, memory seems like something Apple could figure out how to fab. And it's not like they don't have any capital reserves.
Re: How can Apple deal with the memory shortage?
#7"So much so that I heard Samsung’s making more money now with memory than Nvidia’s making with their processors."
I loved Asymco during the Apple 2010s run up, but this, inter alia things mentioned in other comments, should give the reader pause and evaluate how much of this is general knowledge x handwaving x vibes versus a practical ground floor understanding in 2026.
Re: How can Apple deal with the memory shortage?
#8Our problem is lack of competition
High prices for RAM should attract competition.
In general, no.
It takes billions to tens of billions to setup a fab. It also takes years to get it working. Then when you add in the IP for memory, it pretty much ain't happening.
All the RAM monopoly has to do is wait 3 days before you're producing and drop the price and you're ruined. Meanwhile they've built up a battle chest of hundreds of billions in profits.
China might be the only competition we see come out of this, but only because they are playing the long game and have trillions of US dollars to play the game with.
Re: How can Apple deal with the memory shortage?
#9Our problem is lack of competition
High prices for RAM should attract competition.
Real life is not SimCity, you can't just plonk more RAM factories like that. It takes an ungodly amount of capital investment, many years before you see a cent in return, plus there's only a couple firms worldwide that can do it in the first place.
Re: How can Apple deal with the memory shortage?
#10Earlier quoted context omitted.
High prices for RAM should attract competition.
In general, no. It takes billions to tens of billions to setup a fab. It also takes years to get it working. Then when you add in the IP for memory, it pretty much ain't happening. All the RAM monopoly has to do is wait 3 days before you're producing and drop the price and you're ruined. Meanwhile they've built up a battle chest of hundreds of billions in profits. China might be the only competition we see come out o…
There are a lot of companies that have billions in cash and are also prodigious buyers of RAM. Companies like Apple, Google, Meta, Nvidia...
Do they want to get into a commodity business like RAM production? Maybe not, but if prices stay high long enough that demand for their products falls off, they might think about it.
I know that I personally and my employer are cutting way back on new technology purchases and squeezing as much as we can out of old equipment due to the cost of RAM and storage now.