Samsung's NAND flash memory chips are used in Apple's iPhone
And there is not much that Samsung Electronics, the world’s biggest flash memory maker, and Hynix Semiconductor, the industry’s No. 3 player, can do about Apple’s moves, as the American company increasingly gains leveraging power due to the global popularity of its iPhone handsets and other consumer electronics products.
The summary of the arguments goes as this ― Apple is contributing to the suppression in flash memory prices by ordering more chips from semiconductor makers than the amount it actually buys from them.
“Apple should certainly be blamed for deteriorating the supply and demand cycle in the global NAND flash market,” a senior industry official told The Korea Times, refusing to be named.
“Apple has asked Korean semiconductor makers to produce a certain amount of chips for its digital products, only to actually purchase a smaller volume eventually. The company doesn’t make immediate purchases, but waits until chip prices to fall to the level the company has internally targeted.”
The chip industry had hoped Apple would increase purchases of NAND flash memory chips to boost the output of iPhone and other flagship devices.
The global iPhone craze currently has Apple drenched in robust earnings.
NAND flash memory chips are primarily used in memory cards and storage drives in mobile devices, computers and other consumer electronics products.
Another industry official, also reluctant to be identified, used the words “absurd” to describe Apple’s purchasing strategies.
“Samsung and Hynix both provide chips to Apple and have less of an edge in deciding prices and volume. Apple’s strategy could hurt the industry’s health,” he said.
Both Samsung and Hynix refused to officially comment, as did officials from Apple’s Korean office.
“We already knew about this,” a Samsung official said, without elaborating further. – read more at The Korea Times…
