“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.

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Economy of Scale: Operational efficiencies gained from increased production, thereby reducing cost per unit. Just another reason why iPod dominates world markets.

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