According to a Financial Times report, Apple (NASDAQ: AAPL) could be in trouble if it procures NAND flash memory chips from a Chinese chip manufacturer for its new iPhone 14.
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Republican lawmakers Marco Rubio and Michael McCaul commented that they found it alarming that Apple was going to add Chinese chip maker Yangtze Memory Technologies Co to its list of suppliers for memory chips that are used to store smartphone data.
The report quoted Rubio, ” It [Apple] knows the security risks posed by YMTC. If it moves forward, it will be subject to scrutiny like it has never seen from the federal government. We cannot allow Chinese companies beholden to the Communist party into our telecommunications networks and millions of Americans’ iPhones.”
In response, the Financial Times quoted Apple as stating that it was still “evaluating sourcing from YMTC for Nand chips to be used in some iPhones sold in China” and would not consider selling iPhones with YMTC chips outside China.
Is Apple a Buy or Hold?
Wall Street analysts are bullish about AAPL with a Strong Buy consensus rating based on 23 Buys, four Holds, and one Sell.
AAPL’s average price forecast of $183.56 implies that the stock has an upside potential of 18.8%.
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