Ternus Under Pressure to Ditch Chinese Chip Deal as Washington Exerts Influence

John Ternus, Apple's new CEO, is facing pressure to abandon the Chinese chip deal that Tim Cook fought to keep. The pressure comes from Washington, which wants Apple to drop its reliance on cheap Chinese memory chips. This move would be a significant shift for Apple, as it has been a major supporter of the Chinese chip industry.

According to CNBC, Strategy Risks founder Isaac Stone Fish said there is a 'real possibility' that Apple will decide to move closer to the American business community and rely more on U.S. silicon. This would be a significant change for Apple, which has been relying on Chinese chips due to their lower prices.

Apple's CFO Kevan Parekh stated that over 100% of gross margin compression came from memory costs, highlighting the significant impact of memory prices on Apple's business. Cook warned that memory costs will continue to increase, and Apple may need to pay even higher prices in September and beyond.