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Tue, Dec 29, 2009 - 02:25 PM EST  —  AAPL: 210.065 (-1.545, -0.73%)  |  NASDAQ: 2289.64 (-1.44, -0.06%)

Apple’s massive NAND flash demand again creates worldwide shortage; preventing 64GB Zune?
Monday, September 14, 2009 - 02:03 PM EST

Apple Online Store"In a new report from DigiTimes, Taiwanese memory module makers said there have been a 'serious shortage' of NAND flash chips, as companies provide more and more of their supply to Apple. Industry sources said memory providers will limit the supply of memory provided to companies other than the Cupertino, Calif., hardware maker," Katie Marsal reports for AppleInsider.

"'Samsung Electronics has informed Taiwan module makers that it will halve its NAND flash memory to them in September, and Micron Technology has also told some of its downstream customers that no NAND flash chips are available, claimed the sources,' the report said. 'Toshiba and Hynix Semiconductor are also giving priority to Apple, and are offering limited supply to the spot market, the sources added,'" Marsal reports.

"The average price for a 16GB chip was $4.48, up 7.2 percent in the first half of September," Marsal reports. "32GB also rose 4.3 percent to $6.80... If true, the latest report from DigiTimes could suggest that competitors, like the Zune HD, have been unable to offer the capacity of the iPod touch because memory suppliers simply will not provide enough product to anyone other than Apple."

Full article here.

MacDailyNews Take: Pfft. Zune. Surely, Samsung and Micron could dust off and ship Microsoft the handful of 64GB parts that happen to fall off the conveyor belt onto the floor before they're packed for Apple. 5-second rule! Microsoft can't need more than a couple thousand such chips, most of which are destined to sit on warehouse shelves until the end of time or retailers demand that Microsoft take them back, whichever comes first.

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Sep 14, 09 - 01:09 pm Comment from: Macintosher

Zune Tang is now going to be no-Zune Tang.

Sep 14, 09 - 01:10 pm Comment from: HMCIV

@MDN Take: I thought the 5 second rule applied to Windows uptime.

Sep 14, 09 - 01:12 pm Comment from: cheapskatedave

funniest MDN take in awhile.

"5 second rule!"

Sep 14, 09 - 01:14 pm Comment from: The Other Steve

First ATT complained that Apple is too successful,
now NAND flash chip makers are saying Apple is too successful.

Doesn't anyone want to sell their product?

Sep 14, 09 - 01:15 pm Comment from: Jersey_Trader

Steve Ballmer, even the suppliers can't take the Zune seriously. You should take what is left of the cash from your dying company and buy or build your own chip company. In for a penny in for a couple billion. IF YOU BUILD IT SOMEONE COULD ... MAYBE ... MISTAKINGLY ... BUY ONE.

You should make them brown again!

Sep 14, 09 - 01:20 pm Comment from: Mormegil

I think the only thing preventing the 64GB Zune is the market, as in none . . . wink

Sep 14, 09 - 01:23 pm Comment from: sMac

http://nelsonhaha.com/

Sep 14, 09 - 01:31 pm Comment from: Bioness

Zune can use faulty NAND and no one would notice any difference

Sep 14, 09 - 01:33 pm Comment from: Jubei

Zune Tanged won't be around today I bet. He's probably camping out at the local Walmart Store/Best Buy to beat the crowd of 12 or so on launch day!

Sep 14, 09 - 01:45 pm Comment from: ericdano

What's a Zune again?

Sep 14, 09 - 01:50 pm Comment from: TheConfuzed1

I'm sure the shortage of Zune customers is a bigger obstacle for Microsoft.

Sep 14, 09 - 01:59 pm Comment from: macman

Sell memory to the customer who has 80% of the marketshare or to a customer with 1.1%, I wonder who will win.

Sep 14, 09 - 02:09 pm Comment from: shen

somehow this feels a lot like the complaints about getting games on the Mac.

"Sell memory to the customer who has 80% of the marketshare or to a customer with 1.1%, I wonder who will win."

Yeah, that was it.

I am sure glad that Apple has managed to get a chunk of market and doesn't have to suffer that crap anymore.

Though most of Apples market share is in home users, and we all know it is the people at work who are playing games... wink

Sep 14, 09 - 02:09 pm Comment from: jaundiced

The world rejoice, for you have been saved!

Sep 14, 09 - 02:14 pm Comment from: OpJ

This isn't simply a matter of selling to the company that has the larger market share.

Apple has spent billions of dollars in pre-payments to to flash memory suppliers. When Apple orders memory, it is basically ordering memory from a factory built with its money, not the manufacturer's.

Sep 14, 09 - 02:16 pm Comment from: Cubert

Or, until Mafia$oft pays people to buy them - just like how they are paying people to use Bing.

Sep 14, 09 - 02:20 pm Comment from: TowerTone

"Steve Jobs doesn't care about Zune people."

Sep 14, 09 - 02:44 pm Comment from: Bonkers For Mac

@Bioness

"Zune can use faulty NAND and no one would notice any difference"

ROFLMAO

Thanks -- that laugh did me good!

Sep 14, 09 - 02:44 pm Comment from: Mr. Reeee

Poor MS!

I have a bunch of old 256MB and 512MB RAM chips I can loan MS for the Zune. If I really do some digging, I may even have some old 1MB RAM. It'll cost 'em, though!

Sep 14, 09 - 03:27 pm Comment from: ed

Why aren't these flash suppliers raising their prices? Demand far exceeds supply, raise prices. Sounds like they are leaving lots of "Area" on the supply and demand graph. (Where area = profit$)

Is the NAND market so inelastic they can't jack the price a few cents per thousand until demand meets their production capacity?

Sep 14, 09 - 03:27 pm Comment from: Goobi

Interesting to note the price differences between memory capacity, even though they are supplier prices.

Sep 14, 09 - 03:44 pm Comment from: Bizlaw

Oh, come on. We all know there's actually a shortage of cardboard and plastic for the Zune's packaging; that's what's REALLY holding up the 64GB Zune. But Microsoft would rather make Apple look like the bad guy.

Ballmer: "See, Apple's selling SO many iPods and iPhones, there's not enough parts left for the rest of us!"

Nice marketing strategy.

Plus, Greenpeace would be all over Microsoft if they announced the cardboard/plastic shortage reason. Greenpeace might paint that taxpayer-paid-for bridge in Redmond or something.

Sep 14, 09 - 05:18 pm Comment from: Johnsson

The power and leverage of having a huge cash surplus and paying up front for vital components. The funny thing is, biz school graduates will tell you apple should buy back stock, take loans etc... I just love the way apple thinks outside the box. The stock will follow, just takes a little longer to get there *cause biz school graduates just don't get it. Isn't apple's cash close to $50 a share these days and rising? The devil inside me wants some more short selling to bring the stock down so I can buy more. But I think those days are over. It's just too strong a company to manipulate any more.

Sep 14, 09 - 05:34 pm Comment from: Rainer

OpJ is right.
AFAIK, Apple basically finances the NAND flash RAM the manufacturers build. They can't just sell it to someone else.
That would be similar to you selling a truck full of dope on your own that a South American drug cartel gave you to hand-over to someone else.
The outcome would not be pretty in both cases....

Sep 14, 09 - 05:34 pm Comment from: Johnsson

Speaking of cramer, he probably won't be mentioning apple for a while. He can no longer pump and dump, that's what he does. I would like to be wrong but let's see if he even mentions apple in the coming months. Apple long term just keeps getting bettr.

Sep 14, 09 - 06:03 pm Comment from: ken1w

Ridiculous. Microsoft would be very lucky to sell enough Zune HD's so that they actually had a problem with acquiring sufficient supply of flash chips.

Sep 14, 09 - 06:48 pm Comment from: Buster

Do you realize that Zune spelled backwards is D-O-R-K-S?

Sep 15, 09 - 01:44 am Comment from: Cubert

@Buster,
No. It spells, well, something different.

http://bdmonkeys.net/brown.png

Sep 15, 09 - 05:58 am Comment from: hagar57

I can imagine the intercom message at Toshiba's factory:
"Attention, employees! Due to an unexpected order from Microsoft, the late shift will have to work an extra five minutes today. This is just a one-time thing and we do not anticipate a repeat any time soon."

Sep 15, 09 - 07:26 am Comment from: maclover

wat a fkn markup!!!!!!!
32gb of usb stick or compact flash is in the $100-200 range and theyre sayin $8 each?
I explain to people that technology is at a way higher level then actually seen - but restraints - such as pricing - keep the curve down. It doesn't seem to be financially impossible to have 320gb Nand hard drives in netbooks or lappys (10 32gb chips run in series) but the actually markup would make it impossibly expensive. Why is that? I guess it's like soda. Mickey Dees knows you can get 2 liters of soda for $0.99 at the market, but charges you $2 for 32oz, AND makes it using syrup and seltzer so their cost is negligible. Jeans too actually. $5 Hong Kong jeans go to Macy's - with 'DKNY' or 'True Religion' stamped on them - and sell for $75 to $400 dollars. As consumers, we get jacked in so many ways it's unbelievable. I'm all for dealing directly with China, and cutting out the middle man with his outrageous cut, prices aren't dropping like they should be - because no ones paying attention.

Sep 15, 09 - 11:02 am Comment from: Yves Pollock

Actually maclover, you can get 32 GB usb flash drives direct from hong kong for $27.00 (with free shipping) - I've been buying loads of electronics and computer parts via ebay from sellers in china / hong kong, and why not? Comes in the mail, right to the door, and fairly quickly too. Why should we pay a markup for shipping and packaging and paying some idiots wages in Best Buy, for exactly the same item?

Oct 25, 09 - 01:44 pm Comment from: Bob

It's amazing that you fanboys are so willing to bend over and take one up the backside. Without competition from other companies, (MS included), Steve will implore more communist tactics and have you all serving the Reich.

Unbelievable that anyone pro/con Apple or Microsoft can be as narrow minded and retarded as you all. No wonder MS users think Apple users are all stupid fanboys - the comments in this post prove it. (Typed on a mac running firefox).

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