• Apple Accused of Flash Memory Manipulation

    With Apple's enormous power and size, it isn't difficult to imagine the many ways in which the company is capable of exerting massive influence wherever it places its high beams. Naturally, such influence leaves Apple vulnerable to the occasional criticism of market manipulation.

    Case in point. This week Apple is facing claims that it is "manipulating flash memory prices" through the duplicitous act of placing huge orders and then ultimately taking less than originally demanded. According to a report from 9to5Mac, Apple continues to affect prices with the tactics they are believed to habitually employ.

    An article in the Korea Times cites industry sources, principally chipmakers, who seem to be frustrated because Apple will place a large order for the component but then subsequently buy less than originally demanded, generating market saturation and suppressing prices.
    The actions are hitting giant memory makers Samsung and Hynix, both of which are virtually powerless to stop Apple given how desperately they need to continue doing business with Cupertino. But when the "lean margins" experienced by Samsung and Hynix are observed in comparison to Apple's soaring earnings, the real impact of the alleged shoddy purchasing practices can be seen.

    "Apple should certainly be blamed for deteriorating the supply and demand cycle in the global NAND flash market," The Korea Times quotes an un-named industry official as saying.
    When a claim like this is levied, it's important to consider the source. And in this case, we don't even have a "source," unless you count the unnamed individuals cited in the story who have plenty to say but few details or other shreds of evidence to provide.

    Another industry official, also reluctant to be identified, used the words "absurd" to describe Apple's purchasing strategies.
    It should also be noted that Samsung, Hynix and Apple Korea did not contribute to the Korea Times report that sparked the controversial accusations.

    Image via Apple
  • Connect With Us

  • Twitter Box

  • Facebook