Apple's New CEO Is Already Being Pressured to Drop the Chinese Chip Deal Tim Cook Fought to Keep

Apple incoming CEO John Ternus faces mounting pressure from Washington policymakers to terminate memory chip supply agreements with Chinese manufacturers, including CXMT, which former CEO Tim Cook had vigorously defended. This geopolitical friction arrives amid an acute surge in global DRAM pricing, which Cook previously characterized as a 100-year flood that heavily compressed Apple gross margins and spurred retail price increases. Financially, Apple continues to demonstrate core strength, posting fiscal Q3 revenue of $109.42 billion, up 16.36% year-over-year, while approaching an unprecedented $5 trillion market capitalization. However, severing ties with cost-effective Chinese DRAM suppliers could heighten production costs and further squeeze hardware profitability across key product lines like the iPhone. To balance geopolitical demands, Apple is expanding domestic partnerships, including a multi-year agreement with Broadcom valued at over $30 billion under its U.S. manufacturing initiative. The company's strategic navigation will serve as a crucial test of operational margins and supply chain resilience against tightening international trade constraints.