Monday, November 21, 2005
Apple Secures Flash Memory Supply Deals For iPod
Posted by Chris Gohlke in "HARDWARE" @ 06:00 PM
"Apple Computer Inc. on Monday said it would prepay $1.25 billion to secure its supply of flash memory used in its market-dominating iPod music players amid an expected surge in demand for the chips. Apple said it would make the payment over the next three months in a series of agreements to lock up NAND flash memory supply through 2010 with five leading manufacturers: Hynix Semiconductor Inc., Intel Corp., Micron Technology Inc., Samsung Electronics Co. Ltd., and Toshiba Corp."
Assuming that the iPod market remains strong, this makes good business sense for two reasons. One, it gives them a reliable supply of chips and it also prevents competitors from accessing that same supply.
Assuming that the iPod market remains strong, this makes good business sense for two reasons. One, it gives them a reliable supply of chips and it also prevents competitors from accessing that same supply.
