Samsung denies partiality to Apple for Flash memory
Apple recently launched their iPod nano at competitive prices with decent storage capacities. So much so, that it is expected to harm the sales of cheap small capacity Korean manufacturers selling MP3 players. Market reports suggested that the iPod nano is costing just 90 dollars in manufacturing costs to the company, which is mostly due to extremely low prices Apple is getting for the flash memory from Samsung.
However, Samsung denies any partiality to Apple for their supplies. The company claims that their dealing with Apple is like any other business deal. And considering Apple is buying bulk of their manufacturing capacities of the flash memory, they do manage to get magnified discounts.
In addition, Samsung also says that Apple is using the new generation MLC type memory which itself is around 30 to 40 percent cheaper than the type used by Appleâ€™s disgruntled Korean competitors. This allows Apple to price their products competitively resulting in bad business for the other companies. Unlike the more common SLC type, the new MLC can store two data units on one cell. This means product costs are lower and productivity is higher.
CEO of Samsungâ€™s semiconductor division, Hwang Chang-kyu said in a statement: â€œThere was nothing unfair about the businesses with Apple. The price difference may seem magnified since the only demand at the moment is from Apple.â€