Samsung and their policies with Apple
Apple somewhat shocked the world with their iPod nano products featuring flash drives. The products are priced very competitively and due to the usage of Flash memory are very slim. This could not have been achieved by using hard drives based on the traditional storage format. Samsung has been credited for pricing their flash memory chips low to Apple to enable the creating of such a device at low prices.
However, this policy of discounted pricing to one of their potential competitor in the mp3 player segment has somewhat surprised the market. The company seems to be adopting the principle of competition instead of its usual practice of giving special treatment to sister companies or other business divisions within the corporation.
Their agreement with Apple is also expected to shakeup the low priced mp3 player market as the small manufacturers would find it hard to compete with the likes of Apple. It is tough to assume whether this competition is a result of Samsung Groupâ€™s decision to single out the most profitable business operations and discard less profitable ones aimed at re-streamlining its business portfolio.