Apple cuts $ 500 million flash-memory business
Apple on Tuesday said that it made a $ 500 million to prepay for Toshiba flash memory chips, and said the market is stabilizing.Â
“At the NAND flash market is now beginning to stabilize, and we expect it to move to a small imbalance in demand,” said Apple Chief Operating Officer Tim Cook, Apple on Tuesday in the earnings conference call. (The call is accessible as an audio webcast at Apple’s Web site.) In The News previously reported Reuters.
“From the standpoint of Toshiba prebuy, we made a long-term agreement with Toshiba, a part of that, as part of terms and conditions, we have paid them 500 million dollars,” said Cook. “We see a flash is a key component for us, because we use it in so many of our products and we have a reasonable percentage of users of Flash on a worldwide basis.”
NAND Flash is used to store data in a variety of consumer products, including digital media players and smartphones, such as the IPod and iPhone, respectively. Over the past two years, a flash-chipmakers such as Japan-based Toshiba and the U.S. company Micron Technology were greatly reeling from the depression of prices for flash memory.
Intel, which makes flash memory chips together with Micron, also see the recovery in pricing. “In the year that over 50 percent,” said Troy Winslow, marketing manager for the NAND Products Group at Intel, in the telephone interview earlier this week. He talked about his return to the flash memory chip prices in the spot market. “It was very positive for the industry and, obviously, we took advantage of it. And our business is very good,” he said.
Even with a spot market prices for flash memory - which is a boon for manufacturers - it would not necessarily lead to price hikes for consumers, according to Avi Cohen, managing partner at Avian Securities. “If the question - are the components (flash memory chips) of the cost by 50 per cent more than three months ago? Absolutely not,” he said.








