Report: Apple NAND flash orders not yet seen; makers selling below cost

“In contrast to the huge procurement of NAND flash the company made in 2007, Apple seems to not have started making big procurements in 2008,” Josephine Lien and Esther Lam report for DigiTimes.

“While memory makers are worrying about the consumption level of Apple, mainstream NAND flash prices are already priced below cost, according to sources at Taiwan memory makers,” Lien and Lam report.

“The sources estimated that Apple procured about US$1.2-1.3 billion worth of NAND flash in 2007, with Intel, Hynix Semiconductor, Micron Technology and Samsung Electronics all being major suppliers. Apple’s concentration of its procurement within several months last year resulted in a more rapid price fluctuation in NAND flash, the sources noted,” Lien and Lam report.

More in the full article here.

15 Comments

  1. Nothing to see here.

    Last year they weren’t sure what would happen with supply and price, so they locked in early. This year they are more confident that they will be able to but at good (probably declining) prices throughout the year, so they don’t have to buy early.

    Although they will be completely f***ed when that new NAND based ZunePhone comes out and becomes the next big thing. Or maybe not.

  2. @silverhawk

    You do make a good point there. Though im not sure how long they will decide to wait for that. But hey if they can get it for similar cost or cheaper with intel then why not go with them. Easier to order memory and chips from one place then go around.

  3. If Apple would buy a NAND factory, Apple would become totally depending on that particular technology!
    Things are going too fast, better evolve and always take the best new techs to be around (and let others to take the risks of bankruptcy).

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