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View Full Version : Apple Secures Flash Memory Supply Deals For iPod


Chris Gohlke
11-22-2005, 02:00 AM
<div class='os_post_top_link'><a href='http://today.reuters.com/news/newsarticle.aspx?type=technologyNews&storyid=2005-11-21T203211Z_01_HAR153928_RTRUKOC_0_US-APPLE-FLASH.xml' target='_blank'>http://today.reuters.com/news/newsarticle.aspx?type=technologyNews&storyid=2005-11-21T203211Z_01_HAR153928_RTRUKOC_0_US-APPLE-FLASH.xml</a><br /><br /></div><i>"Apple Computer Inc. on Monday said it would prepay $1.25 billion to secure its supply of flash memory used in its market-dominating iPod music players amid an expected surge in demand for the chips. Apple said it would make the payment over the next three months in a series of agreements to lock up NAND flash memory supply through 2010 with five leading manufacturers: Hynix Semiconductor Inc., Intel Corp., Micron Technology Inc., Samsung Electronics Co. Ltd., and Toshiba Corp."</i><br /><br />Assuming that the iPod market remains strong, this makes good business sense for two reasons. One, it gives them a reliable supply of chips and it also prevents competitors from accessing that same supply.