Kioxia CEO Announces Halt to NAND Price Increases
Kioxia CEO Hiroo Ota has decided to halt further price increases, stating that NAND memory prices have risen sufficiently. What does this mean for Apple?
Hiroo Ota, who took office as Kioxia CEO in April, made a rare decision in the technology world by announcing that his company will not implement further price increases on its NAND memory products. In an era where the division is heavily profit-oriented, this price freeze, particularly targeting data center customers, demonstrates Kioxia’s intention to alleviate market pressure as a major supplier.
Apple, which accounts for 20% of Kioxia’s total revenue, is also expected to directly benefit from this price stability. Following a recent 70% quarterly increase in NAND memory prices, this announcement is considered a welcome development for major consumer electronics manufacturers like Apple.
- Kioxia CEO Hiroo Ota stated that NAND memory prices have now risen sufficiently and ordered a halt to further price increases.
- Apple is among the companies that will benefit most from this pricing policy, as it accounts for 20% of Kioxia’s total revenue.
- Kioxia had increased prices on NAND products by 70% in the period ending in June.
- Apple continues to seek alternative suppliers due to the increase in memory costs.
NAND Prices Reach Industry Limits
Hiroo Ota emphasized that even massive data centers, known as hyperscalers, have finite budgets, and further price increases are necessary. Kioxia warned that the increase could harm the entire market. Kioxia had pursued an aggressive price increase in the second quarter of the year; However, it appears that this strategy is no longer sustainable.
The pressure on tech giants due to memory costs may be somewhat alleviated by OTA’s intervention.
Apple Seeks Solution for Memory Costs
Apple explicitly stated in its third-quarter 2026 financial results report that memory costs were constantly increasing and putting pressure on profit margins. The company maintained its high cost expectation for September as well. Kioxia’s new stance could be critically important for Apple’s supply chain strategy.
On the other hand, ongoing potential partnership talks between Apple and Chinese memory manufacturer CXMT show that the tech giant does not want to remain solely dependent on Kioxia.
These kinds of strategic moves could increase Apple’s negotiating power over the memory market, acting as a shield against future price increases.
Market Dynamics Are Reshaping
This period of “memory chipflation” in the sector was caught between manufacturers’ desire to protect their profit margins and customers’ efforts to reduce costs.
Kioxia’s decision to halt price increases is interpreted as a step to reduce tension between suppliers and customers. This price stability in the memory sector could also balance the cost pressure reflected in smartphone and computer prices in the medium term.
Do you think Kioxia’s decision to freeze prices will be enough to stop the general cost increases in the technology world? Share your opinions and thoughts on the changes in memory prices in the comments.
