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Apple buys up Samsung’s flash memory stock

In preparation for a new device?
Apple buys up Samsung’s flash memory stock
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Apple and Samsung have been hardware bedfellows for a long time now, and the latest rumour suggests the iPhone manufacturer has snapped up Samsung’s entire stock of NAND flash memory until April 2009.

Samsung currently manufactures more than 40 per cent of the world’s flash RAM supplies, so this is a monumental amount of silicon for Apple to be stock piling. Two possible reasons spring to mind for Apple’s massive bulk purchase.

Either it’s gearing up for an iPhone hardware refresh (or even a full hardware update, if rumours are to be believed), or it’s locking out the competition.

This alleged RAM order would cause a significant NAND memory shortage, and undoubtedly drive up the costs of flash RAM for the rest of the world’s hardware manufacturers.

Of course, it could be both of these possibilities, and Apple has simply timed any iPhone updates superbly well to stymie the competition.

But this kind of shortage has an upside, too. It demonstrates a product demand, and will hopefully stimulate the competition to trend up the development, supply and pricing of flash memory.

Apple Insider