It is reported that Apple has accepted Kioxia (285A.JP) to double the price of flash memory and renegotiate every quarter

According to reports from domestic media outlet IT Home, there are rumors that due to the shortage of memory chips and rising prices, Apple Inc. (AAPL.US) has been forced to agree to the contract terms set by Japanese flash memory giant Kioxia (285A.JP). Kioxia's shares fell 1.8% in the afternoon, trading at 22,425 yen.

Kioxia has decided to double the procurement price of its NAND flash memory starting from the first quarter of this year, and will adjust prices each quarter based on market conditions, indicating that prices may continue to fluctuate in the future.

The report states that if the rumors are true, even if Apple secures short-term supply through contracts, it will still be difficult to completely avoid the cost pressure brought about by the continuous rise in NAND prices.

IT Home noted that Apple's iPhone 17 series has introduced five DRAM and NAND suppliers to enhance supply chain resilience, but under the current market conditions, it may still be difficult to completely avoid the impact of price increases. The tight supply of memory and rising prices have become industry-wide issues that cannot be easily resolved by a single manufacturer.

Ming-Chi Kuo, an analyst at TF International Securities known as the "strongest Apple analyst," stated that under the pressure of rising costs, Apple may need to absorb some of the price increases during turbulent market periods to maintain its market reputation and product competitiveness. He also pointed out that Apple's services business can provide a buffer against hardware cost fluctuations