A report in The Korean Times suggests that Apple is taking advantage of its position as a major buyer of flash memory to manipulate the prices of manufacturers, driving them down using its buying power.

According to the feature, Apple is ordering large quantities of silicon from manufacturers, yet purchasing a smaller amount in its final order. This tactic then allows the company to suppress flash memory prices as semiconductor manufacturers compete to offload the excess.

"Apple should certainly be blamed for deteriorating the supply and demand cycle in the global NAND flash market," an anonymous senior industry official allegedly told The Korean Times.

According to market research firm DRAMeXchange, contract prices for NAND flash memory chips dropped 4 per cent last month, despite huge numbers of units shipping from the major manufacturers such as Samsung and Hynix.

However, the expected increase in smartphone manufacturing and greater chip densities is hoped to prove a lifeline for Korean chip makers, with a surge in Android-powered devices on the horizon.