Industry
Why Apple can benefit even as memory prices surge: long-term contracts, bulk procurement
A surge in memory prices could squeeze Apple’s profitability, but an analysis said it may ultimately strengthen Apple’s advantage over competitors. Asymco analyst Horace Dediu said much of the spike is in urgent, short-term purchases, while Apple relies more on long-term contracts and large-scale procurement. He said suppliers may be less able to take a hard line with big, long-term buyers. Smaller smartphone makers may face higher costs and supply risk.
