Apple NASDAQ:AAPL is back in focus as Wall Street and Washington react to reports that the company is seeking clearance to buy memory chips from China's CXMT.
Loop Capital reiterated its Buy rating, saying Apple's reported lobbying effort fits its research that the company is looking more deeply at local Chinese content for its supply chain. The Financial Times reported that Apple has asked the Trump administration for approval to procure DRAM from ChangXin Memory Technologies.
The issue is sensitive because CXMT was recently added to a Pentagon blacklist over alleged links to China's military. Apple is not automatically barred from buying from CXMT, but such a move could carry political and reputational risk. Sen. Tom Cotton warned on X that using Chinese memory would be a grave mistake, citing risks to shareholder value, customer privacy and U.S. security.
The pressure comes after Apple raised prices on several products by 15% to 25% because of rising memory costs.
the story is about Apple trying to protect margins while navigating Washington's China concerns. The next thing to watch is whether the administration grants clearance.