Apple (AAPL, Financials) is getting fresh attention as it looks for ways to manage rising memory costs. Loop Capital kept its Buy rating on the stock, saying reports that Apple is exploring Chinese memory supply fit with the firm's earlier research.
The Financial Times recently reported that Apple has asked the U.S. government for clearance to buy DRAM from ChangXin Memory Technologies, or CXMT. The company is on a Pentagon list tied to alleged Chinese military links.
Apple is not barred from buying from CXMT, but the move could carry political and reputational risk. The interest makes sense from a supply-chain view. Memory prices have climbed sharply, and Apple recently raised prices on several products because of higher component costs.
For investors, the question is whether Apple can lower supply pressure without creating a new China-related headache.