“Samsung Electronics has denied industry accusations that the company damaged Korean firms by supplying Apple with extremely cheap NAND Flash Memory for its new iPod Nano MP3 player. ‘There was nothing unfair about the businesses with Apple,’ the CEO of Samsung’s semiconductor division, Hwang Chang-kyu, said Wednesday,” Digital Chosun Ilbo reports.
“A Samsung executive said the Flash memory supplied to Apple was of the new MLC type. That is 30 to 40 percent cheaper than the type used by Apple’s disgruntled Korean competitors, allowing the U.S. firm to outprice them. ‘The price difference may seem magnified since the only demand at the moment is from Apple,’ he added. ‘It’s true that the company that has the largest market will have the edge. Buying 100 units and buying one can’t be same.’ He said it was difficult to satisfy all customers and win the market at the same time,” Digital Chosun Ilbo reports.
Full article here.
Advertisement: Apple iPod nano. 1,000 songs. Impossibly small. From $199. Free shipping.
Economy of Scale: Operational efficiencies gained from increased production, thereby reducing cost per unit. Just another reason why iPod dominates world markets.
Related articles:
Apple’s iPod nano forces price cuts on flash-based MP3 players in Taiwan – September 15, 2005
Apple’s music competition having tough time and the iPod nano won’t help them – September 14, 2005
Piper Jaffray: Apple seeing high demand for iPod nano – September 14, 2005
Apple iPod nano 32GB possible in second half 2006? Samsung unveils new flash memory NAND chips – September 12, 2005
Also-ran MP3 player makers miffed by Apple’s impossibly low price for iPod nano – September 09, 2005
Apple introduces iPod nano – September 07, 2005
Apple stomps competitors in flash-based MP3 player market – September 02, 2005
This applies to computers, as well. Apple has demonstrated a clear willingness to lower prices, as long as sales justify doing so. If Macs keep selling more strongly, I see lower prices in the future.
Yeah, Us Mac users have had to pay a premium for our computers for all these years because of relatively low volume Mac sales.. You haven’t heard us complaining.. Have you?
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first post, wiii
Define “complaining.”
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You can’t expect your local grocery store to compete with a supermarket chain on price. It’s called buying power.
What about the Mac Mini Update MDN?
http://www.thinksecret.com/news/0509macmini2.html
Apple is sellign the new models disgused in the old box to sell of their old inventory. The customer can;t return the older min for a chance to get the one without paying a restocking fe..
This is simply a dirty trick by Apple and a smack in the face for loyal mac users. Apple can go to hell.
…and ‘disgruntled’ becomes ’embattled’ becomes ‘beleaguered’.
MW = ‘farm’ as in “Apple’s buying chips, they’re gonna be buying the farm.”
So… you would feel cheated if you got the older box with the newer mac mini?
Nah, many other PC manufacturers do it too. At worst, it is a bit sneaky. I do wish they would clearly post the specs on the outer box at least.
For example, I bought a Western Digital HD recently that said 120GB on the box, but when I opened it up, it actually had a 160GB inside along with a card saying I had received an upgraded drive for no extra charge.
once upon a time there was an expression:
“Cornered The Market”
Apple has cornered the market on digital music players. They’ve done so in a relatively short period of time. It makes them the proverbial 800LB gorilla in the product space.
Jobs is sitting in Cupertino rubbing his hands together, rocking back and forth, saying, “I’ve got all the tunes! I’ve got all the players.”
Enjoy it while it lasts, because the industry won’t allow it forever. Either songs on iTunes will go up in price or Apple will start licensing FairPlay to competitors.
The also-rans are beginning to attack each other. The end is near.
LOL “Mac mini Update” you’re the only person I’ve ever heard say that it’s a rip off to get more than what you thought you were paying for. Those are the kinds of surprises most people would like!
Tim, it’s only a rip off if you happen to get the old box with the old machine and then cannot exchange for the new one…
I suppose if you wait a few weeks all the old inventory will be cleared out, but it is still a strange tactic.
Mike,
How is that a rip off? Please clarify again how getting a machine that matches the specs of the packaging and what is currently being advertised at a stated price a rip off.
Sizewell, It’s a rip off because some people are getting new machines with upgraded specs and some are getting old machines for the same price.
Mike,
Then some people are getting exactly what the says, and some people are getting more than what the box says. But nobody is getting ripped off!
Your mom got ripped off buying generic morning after pills!
okay, put it this way…
You and your friend are aware that Apple has upgraded the specs of the mini and you each decide to buy one.
You both walk into your local Apple store and pay the same price for each of your units… When you get home and open up the boxes, you realize that your friend has a faster hard drive, a better video card and a dual layer superdrive. You paid the same price, but there is nothing you can do about it.
Don’t tell me you would not feel ripped off.
Here’s the REAL reason – remember this from 1999?
http://www.macobserver.com/news/99/july/990729/appleinvestssamsung.html
This is a result of smart investing/partnering by Apple. The other fruit from this investment is the absolute consistent high-quality panels in laptops and LCD displays from Apple.
Mike,
If you want to put it THAT way, you might FEEL you got ripped, but you could also feel your friend got LUCKY! Remember, there has been no official announcement of said updated Mac minis.
Mike,
If you really care that much, wait a few weeks until the older ones are out of the channel. You are not getting ripped off if they give you what is advertised, and they are.
Like I said earlier, I might have more of a problem with it if others didn’t do the exact same thing all of the time. Just get over it, some people will get a bonus and some won’t, but everyone will get at least what is being advertised…
It’s Creative that’s complaining.
But I look at this way, Apple is driving up demand for flash and in time production will increase and prices will come down.
Then we can get rid of hard drives and cd/dvd’s almost entirely and have solid state notebooks. 😀
Steve Jobs is making up for all those years he sat on the sidelines.
GO STEVE!!
And if being able to return it without paying the 10% is so important to you, then just don’t buy it direct from Apple then. Many other Mac retailers, like Fry’s for example, don’t charge restocking fees.
Dominates world markets…..except for South Korea.