South Korean FTC probe continues in Apple-Samsung NAND flash memory deal
Wednesday, November 23, 2005 - 12:01 AM EST"South Korea is investigating a flash memory supply deal between Samsung Electronics Co. Ltd. and Apple Computer Inc. over pricing, officials at the Fair Trade Commission (FTC) said on Wednesday," Reuters reports. "South Korean manufacturers of digital music players have complained Samsung is offering the chips used in Apple's iPod MP3 players at an unfairly low price, putting them at a disadvantage."
"News of the probe came a day after Apple said it would prepay Samsung and Hynix Semiconductor Inc. $500 million and $200 million, respectively, to secure flash memory chips for its market-leading iPod music players," Reuters reports. "'We are investigating whether Samsung has been unfairly supplying flash memory chips to Apple at cheaper prices than applied to domestic music player makers,' a FTC spokesman said by telephone."
Full article here.
Advertisements: The New iPod with Video. The ultimate music + video experience on the go. From $299. Free shipping.
Connect iPod to your television set with the iPod AV Cable. Just $19.00.
MacDailyNews Take: What exactly is "unfair" about selling flash memory to Apple at lower prices when Apple is buying 50 times more than anybody else? Which also-ran company or companies are whining? Is it ReignCom and/or Cowon or some other local firm that ordered about 100 units, because they didn't get the same price as Apple did for buying 10 million? Do South Koreans understand bulk rates? Incentives for placing large orders? Hello?
What's happening is that Korean music player makers are on the receiving end of a good old-fashioned ass-whopping from Apple and it seems that Apple intends only to keep escalating the punishment until there's no more ass left to whoop, Korean or otherwise. ReignCom and/or Cowon, if they are indeed one of the complainers, and the rest of the crybabies involved ought to just join the wake; Microsoft, Real, Napster, Sony and many others are already there commiserating. Here, maybe this'll help: 지금 종료하는. 자수.
[UPDATE: 11/23, 8:35am EST: Changed "Creative" to "ReignCom and/or Cowon."]
Related articles:
Apple announces over 30 million iPods sold, reaches long-term supply agreements for flash memory - November 21, 2005
Apple drops Samsung NAND flash memory investment plan - October 15, 2005
Apple and Samsung face potential antitrust probe by Korean FTC over NAND flash pricing - October 07, 2005
Thank Apple for dramatically falling flash memory prices - October 03, 2005
Apple corners flash memory market with iPod nano - September 29, 2005
Disgruntled iPod also-rans accuse Samsung of 'damage' by selling Apple cheap NAND flash memory - September 29, 2005

Well I think those South Koreans should just be thankful they dont live in the North