Apple seeks relief on memory costs in China – Loop confirms buy rating

Apple is sounding out Chinese suppliers as an alternative source for memory chips to reduce rising memory costs. This is evident from market observations by Loop Capital, which the research house published on June 29, 2026. At the same time, Loop confirmed its buy rating for the stock.

The analysts base their assessment on discussions with suppliers and industry contacts. According to them, Apple is actively seeking "memory relief" through Chinese providers. The iPhone maker is responding to a sustained price increase in DRAM and NAND memory chips, which is burdening the manufacturing costs of its products.

Price increases in response to higher memory costs

Apple has already raised selling prices on some products to offset increased material costs. Higher memory prices are affecting not only Apple, but the entire technology industry. Companies developing AI systems are particularly feeling the cost pressure: artificial intelligence applications require large amounts of memory, driving development costs up.

Seeking more cost-effective suppliers in China could help Apple stabilize margins without having to make further price adjustments. Chinese memory makers like CXMT (ChangXin Memory Technologies) and YMTC (Yangtze Memory Technologies) have expanded their production capacities in recent years and are increasingly offering competitive alternatives to established providers such as Samsung, SK Hynix and Micron.

Stock decline creates entry opportunities

Apple's stock saw a decline in June 2026, which some market observers viewed as opening up buying opportunities. One analyst called the pullback a welcome entry point ahead of expected catalysts in July. Specific price data for the move were not provided.

In its June 29 analysis, Loop Capital did not cite specific price targets, but reaffirmed its positive outlook for the stock. The research house sees Apple well-positioned despite current cost challenges.

Trade policy uncertainty remains a risk factor

Alongside procurement questions, trade policy uncertainty continues to loom over tech companies like Apple. On June 30, 2026, it became known that the US government is threatening tariffs of up to 100 percent on products from countries that impose digital taxes. These measures could also affect Apple, which generates a significant portion of its revenue outside the US.

While the US and the European Union had previously agreed to cap most EU tariffs at 15 percent, which provided short-term relief, the new threat of three-digit tariff rates shows that trade conflicts have not yet been resolved. For Apple, which maintains complex international supply chains and both produces and sells in China, such measures pose a significant business risk.

Memory costs as an industry-wide problem

Rising memory prices are not an isolated Apple problem, but affect the entire semiconductor and AI industry. Companies that rely on powerful computing and large amounts of data are seeing their development budgets strained by higher component prices. This could have medium-term impacts on investments in new AI projects.

Apple is further hampered by the fact that the company is increasingly relying on AI features in its upcoming products. Higher memory costs are driving up both the development and production of these devices. Diversifying the supplier base through Chinese providers could therefore not only reduce costs in the short term, but also increase supply security in the long term.

Loop Capital appears to see no cause for concern in the strategic reorientation of procurement, but rather a understandable step toward cost control. The buy rating suggests that the research house believes Apple can successfully overcome current challenges.