Apple Computer’s iPod has become so successful that chip makers Intel and Micron have formed a joint venture to develop the NAND flash memory chips used in Apple iPod nano digital music players.
“Shares in Samsung Electronics Co., Toshiba Corp. and Hynix Semiconductor Inc. – the world’s three largest flash memory chipmakers – plunged Tuesday on news that two U.S. technology giants joined forces to challenge their market dominance,” Kelly Olsen reports for The Canadian Press. “Investors sold off the shares after Intel Corp., the world’s largest semiconductor maker, and Micron Technology Inc. said Monday they had agreed to form a joint venture, IM Flash Technologies LLC, to produce NAND flash memory chips for consumer electronics.”
“The chips are used in Apple Computer Inc.’s hot-selling iPod Nano, other music players, digital cameras, storage gadgets and handheld computers. The new joint company technologies has already secured a $500-million deal to supply chips to Cupertino, Calif.-based Apple, which announced it plans to pre-pay a total of $1.25 billion for flash memory components during the next three months,” Olsen reports. “Apple also said Monday it had agreed to buy memory chips from Samsung, Hynix and Toshiba, but the fresh deal with IM Flash Technologies already highlighted the intensifying competition these Asian chipmakers would face.”
Olsen reports, “The three companies hold the top three spots in the flash memory chip market. As of the third quarter of this year, Samsung held a 50.2 per cent share, Toshiba controlled 22.8 per cent, while Hynix had 13.2 per cent, according to California-based market research firm ISuppli Corp.”
Full article here.
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Related article:
Apple announces over 30 million iPods sold, reaches long-term supply agreements for flash memory – November 21, 2005
damnit! I shoulda sold ’em short had I thought about it!
Tomorrow ze vorld.
Nice to see Apple going with US firms for this venture. This will have a profound impact on the local economies in the states with manufacturing plants, ie Utah and Idaho.
This article brings to mind a screed I once read on “The Red Herring” a few years back. Steve Jobs had come back to Apple, the original iMac had splashed down and in the midst of that tech furor some smart-alec writer asserted that Apple was too bitty a player to ever actually influence anything in the tech sector. And he stressed the EVER. Now Intel is setting up “Apple groups” and partnering with Apple can send a company’s stock up and competitors’ to the floor.
Things like this are my answer to the, “Why are Mac users so smug?” question.
Just awesome. That positive spiral we’ve been talking about for Apple just gets better and better.
It’s now moving a whole industry sector for heavens sake!
Oh, and one more thing. Flash based, very small Powerbooks.
… “Apple … plans to pre-pay a total of $1.25 billion for flash memory components during the next three months.”
Let me repeat that with emphasis added…
… “APPLE … plans to PRE-PAY a total of $1.25 BILLION for flash memory components during the NEXT THREE MONTHS.”
I guess that says it all.