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Sat, Mar 20, 2010 - 01:57 AM EDT  —  AAPL: 222.2499 (-2.4001, -1.07%)  |  NASDAQ: 2374.41 (-16.87, -0.71%)

Apple buying up world’s available NAND flash supplies for next-gen iPhone
Wednesday, February 18, 2009 - 08:35 PM EDT

"A report issued on the flash RAM market indicates that Apple is inhaling supplies of memory components in preparation for the next generation iPhone, causing part shortages and raising the spot price for memory," Prince McLean reports for AppleInsider.

"The ThinkEquity Partners' report centered on SanDisk, which is not one of the four companies Apple actually buys its memory components from (Samsung, Hynix, Toshiba, and Micron)," McLean reports. "However, the report says Apple's voracious appetite for flash RAM is affecting the entire market."

"The iPhone maker has bought out Samsung's entire available supply, putting the world's largest producer of flash memory on allocation until April 2009, according to the report," McLean reports. "Samsung makes just over 40% of the world's NAND Flash RAM.

"ThinkEquity also said that it believes Hynix and Toshiba are also 'under NAND supply constraints as Apple ramps NAND demand for its next-generation iPhones,'" McLean reports. "Apple's position in selling tens of millions of iPods gives it the ability to cherry pick components at prices many competitors can't match."

McLean reports, "Finding enough flash RAM supply may become more difficult as Apple continues to eats up an increasing volume of the world's supply of memory parts, even as the global economy cools and production is cut back."

Read more in the full article here.

MacDailyNews Take: Good thing Palm's Pre is just takeover bait, otherwise they wouldn't be able to find any flash chips to shove into the thing before Apple sues them into oblivion.

[Thanks to MacDailyNews Reader "James W." for the heads up.]

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Feb 18, 09 - 10:07 pm Comment from: LateRegistrant

So there you have it:

A news flash

and flash news.

Only at MDN.

Feb 18, 09 - 10:34 pm Comment from: J. Rubinstein

Our "Pre" is not "takeover bait." It's a wholly original creation, pure innovation, and also contains magic pixie dust and, gee, wasn't I great on "Crazy Like a Fox?"

My crooked, weasel partner, Fred Anderson, and I, along with the rest of Apple's castoffs, are simply dead set on revenge since Jobs told us to take a hike because we couldn't cut it at Apple anymore. Plus, Fred really likes to backdate stock options. A lot.

Anyway, Apple's IP is our IP, right? We worked there once, right?

And, my fake iPhone is the best fake iPhone in the world!

Hey, I know Bono, you know.

Awww, fsck everybody!

Feb 19, 09 - 12:10 am Comment from: twilightmoon

Here is where Apple's large cash reserve comes in handy. They can prepay for a lot of the parts they will need at fire sale prices, while everyone else is trying to cut down on their costs.

It will put them in a very strong position going forward, they already prepaid for displays recently.

Feb 19, 09 - 12:35 am Comment from: grognard

This is just a bit than an Iphone.., but not quite an macbook air. This is the 'next big thing' . I suspect something a bit like a Iphone, but a little less than a notebook. i.e. Apples answer to the netbook. Apps through the App store, and the games as well. The appstore will be inextricably linked to this device, as is the Ipod to Itunes. Why not? The model works for millions of happy customers.
Will it take away Iphone Sales, No because not a phone. Ipod Touch sales, probably, but do away with the classic and lower the price $100 bucks and the touch is the highend Ipod, with more memory to boot.

I see something a little smaller than a macbook Air, with an Iphone keyboard (only the size of a HPnetbook keyboard) - with tactile feel... If you need telephone you got wifi, or Skype. Price? Depending on Flash Drive Option $499 - $899. And if you want a real laptop - White Ibook at $999 Perfect price point -Classic Apple.

Let the rumors commence!

Feb 19, 09 - 12:53 am Comment from: Mac Daddy

@grognard: So, instead of an iPhone Nano, an iPod Mega? Fascinating. I'd buy.

Feb 19, 09 - 01:39 am Comment from: buildingautomator

Can anyone explain me what NAND Flash RAM is ???? Because that would be a whole new invention that Apple should patent and vigorously defend. Because the rest of the world is still using NAND Flash ROM.

Feb 19, 09 - 01:51 am Comment from: Lars H

Apple is flashing their cash for more flash smile

Feb 19, 09 - 04:19 am Comment from: Macaday

Reports are that Palm will launch pre because they bought a load of memory - and paid for it on Mastercard. wink

Feb 19, 09 - 05:03 am Comment from: vanfruniken

Nice to know that there continue to exist expanding markets in this time of economic crisis that appears to exist partly in the people's (initially: the analysts') minds.

But to screw us further, you will see that this time many traditional laws won't hold true:
- if competition increases, this is considered bad news
- if demand decreases, and there appears a brief oversupply, prices will hardly drop. Oh no. Because this is bad news, signs of "deflation". Whatever happened to our free market where there used to be a self-adjusting balance between supply/demand and pricing?

Feb 19, 09 - 09:17 am Comment from: Jeff

@buildingautomator
RAM is Random Access Memory (What iPods Use to store songs)
ROM is Read Only Memory (Like in a game cartridge).

I don't think anyone is using Flash ROM.

Feb 19, 09 - 10:21 am Comment from: R2

Palm should have it easy since the Pre will be limited to a measley 8gb while the next iPhone is due to hit 32gb.

Feb 19, 09 - 06:30 pm Comment from: BiZarRo BaLlmEr

does this mean 64Gig touch and 32 gig iPhone? Can't be due only to iPhone sales can it? Isn't Apple projecting 40 million iPhones this year? Something else is going on.

Feb 19, 09 - 10:53 pm Comment from: grognard

@Mac Daddy

Ipod Mega - Why not? Or a Macbook shuffle or Macbook Nano.

Right between the a phone and a Mac book. Right price point as well.... All flash nice thin (solid aluminium) And Apple has thousand of new users using the app store for apps/ along with Mobile me. for a continual revenu stream like Itune is....

If any one can do it Apple can.

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