“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.
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