Apple has been testing memory from China's CXMT as a lower-cost alternative while regular suppliers raise prices, but CXMT has rejected Apple's discount demands according to Korean site *Digital Daily*. The iPhone maker sought a Trump administration waiver to buy from the blacklisted supplier globally amid a worsening chip shortage driven by AI demand.

CXMT is demanding prices equal to what Samsung and SK Hynix charge, as it already supplies Chinese manufacturers like Huawei and Xiaomi under multi-year contracts. The Chinese firm doesn't need Apple's volume and is becoming a major player in China's smartphone DRAM market.

Memory makers are prioritizing high-bandwidth memory for AI data centers over smartphone DRAM, with much of that capacity potentially going to data centers that may never be built. The DRAM market isn't expected to improve until 2030, leaving Apple without a near-term solution to the shortage even if it secures a federal waiver.