Thread

1. N_Lens · 1789618282 · focus · HN ↗

   The big companies are insulated because they've locked in multi-year supply contracts with ram manufacturers - Microsoft, Google, Meta, Amazon (All on 3-5 yr contracts). OAI's deal with Samsung & SK Hynix is also colossal - locking up roughly 900,000 DRAM wafers per month, roughly 40% of world output (Stargate project).

   Apple got caught out because it had a shorter contract that ended in the beginning of Q3, and they've tried to source their RAM from Chinese CXMT who declined because all capacity was already locked in contracts. They've gone with a lesser known company Kioxia.

   Overall the consumer segment is completely neglected, companies don't care about end users in the current market conditions.

   1. whatever1 · 1789620895 · focus · HN ↗

      Apple has no excuse to be cornered when it had $300B in cash sitting. They f’ed up big time.

      1. robocat · 1789627594 · focus · HN ↗

         You don't know how that is deployed.

         Some of their treasury (Non-Current Marketable Securities) could be bonds that are invested with targeted contracts for trade-secret benefits.

         Say TSMC needs capital, and say Apple has spare capital: they are both likely to agree to an investment where Apple gets contractual benefits that other customers do not.

         I would expect Apple to be very aggressively investing into suppliers to get results that strongly benefits Apple and perhaps that disadvantages competitors.

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