INSANE: Apples china memory push could be a win for aapl stock | Rare Historical Photos

Apple (AAPL) was back in the spotlight on Monday after Loop Capital reiterated its "Buy" rating due to a report disclosing that the company was seeking deeper relations with Chinese suppliers in the supply chain. Specifically, Apple has lobbied U.S. authorities to approve the purchase of DRAM chips from Chinese memory maker ChangXin Memory Technologies (CXMT). If approved, the deal will help reduce hardware costs in the long term.

The news comes at a time when memory prices are a significant cost factor in the consumer electronics industry. Over the last 12 months, the memory prices have soared because of AI infrastructure investments that made the supply tight and forced Apple to raise the prices for several products, including the new MacBook Neo. If the company can find an additional memory provider, investors will be able to see a better supply situation and, consequently, a larger hardware margin.