Apple bullied flash memory suppliers, and why AI datacenters changed the game
A Wall Street Journal report describes how Apple long used its position as the world’s biggest flash buyer to squeeze suppliers, including most-favored-customer clauses and audits of suppliers’ books. AI datacenter demand has now quintupled flash prices over the past year, according to TechInsights, with Apple expected to spend about $25 billion on flash this year versus about $6 billion in 2025 for roughly the same volume, while hyperscalers now buy double Apple’s share. It matters because the AI infrastructure boom has flipped decades of bargaining power, threatening Apple’s storage margins and helping push device costs higher — Tim Cook likened the price surge to a 100-year flood.
SOURCES
- Hacker News (AI)2026-10-29 20:52