Apple has added China's Yangtze Storage (YMTC) to its list of NAND flash memory suppliers for the iPhone 14, which will be released on September 7, according to Korean media outlet businesskorea.
So far, Apple has secured NAND flash memory from Samsung Electronics, SK Hynix and Kioxia. In the DRAM segment, Samsung Electronics and SK Hynix have been the mainstay of Samsung. In DRAM and NAND flash memory, Apple relies heavily on South Korea and had been one of the top 5 customers of Samsung Electronics in the first half of this year (January ~ June).
Industry observers say Apple's intention with CK Storage is to lower the price of NAND flash through supplier diversification. In addition, Apple needs to show a friendly gesture to the Chinese government in order to promote sales of its products in the Chinese market. According to Forbes, 51 Chinese companies are supplying components to Apple as of 2021. Mainland China has replaced Taiwan as Apple's largest supplier.
In addition, Apple has once again chosen China's BOE as one of its display suppliers for the iPhone 14. The Chinese display manufacturer has been supplying displays to Apple since the launch of the iPhone 12. However, Apple reportedly cut back on the displays delivered by BO E for the iPhone 13 after it was discovered that the company had arbitrarily changed the design of the displays. Industry insiders predicted that BOE would be pushed out of Apple's supply chain, but Apple seems to judge that it still needs BOE itself.
The reason Apple has not ended its partnership with BOE is because it needs to reduce its dependence on Samsung displays. Apple has paid Samsung Display about 1 trillion won (about US$720 million) in compensation for each of the three years starting in 2019 and ending in 2021 for failing to purchase the contracted amount. It is unusual for Apple to pay compensation to its suppliers. It shows how much Apple relies on Samsung Display.
While Apple has expanded its supplier base with the addition of LG Display and BOE, Samsung Display still dominates Apple's display orders. All iPhone 14 Pro models have Samsung displays installed. Some displays from LG Display and BOE are used in the base iPhone 4 model.
