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Micron Blames Apple For The Ongoing Memory Crisis, Says It "Took Advantage" Of The Last Down Cycle To "Pay Rock-Bottom Prices," Deterring Capacity Expansion
Micron's Chief Business Officer, Sumit Sadana, has highlighted how Apple's aggressive negotiation tactics led to the company paying 'rock-bottom prices' during previous down cycles. This pressure has discouraged meaningful investments in memory chip production, resulting in chronic under-capacity in the market. Micron's gross profits dwindled during this period, revealing Apple's influence on memory pricing and industry stability.
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Published 25 Jun 2026, 18:21 UTC3 min read
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Summary
TL;DR
- Micron blames Apple for low memory chip prices.
- Apple's pricing strategy pressured chip manufacturers.
- Chronic memory crisis linked to under-investment.
- Micron's gross profits turned negative due to this strategy.
- Apple's product prices increased significantly over the decade.
Interesting facts
- Apple's iPhone prices have grown by 60% while CPI rose by only 37%.
- Micron's recent gross margin was reported at 85%.
Coverage gaps
- Further details on how Micron plans to address capacity issues.