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Memory deal with Apple may hurt Samsung MP3 sales

updated 02:05 pm EDT, Tue October 4, 2005

Samsung deal may backfire

Samsung's aggressive move to offer large price breaks to Apple for flash memory may cut into own profits. Samsung's move to offer volume discounts on NAND flash memory for Apple's iPod nano , according to The Korea Times. "The latest case in point is the decision by the semiconductor division of Samsung Electronics to give big volume discounts on NAND flash memory to Apple Computer of the U.S. at the expense of sales by the electronics firm's MP3 player business unit.... The agreement is forecast to deal a direct blow to the sales and profitability of smaller MP3 player makers worldwide and Samsung Electronics' MP3 player unit is no exception. Earlier this year, the company announced its bold vision to beef up its MP3 player business."




by MacNN Staff

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  1. tomodachi

    Joined: Dec 1969

    0

    yeah

    As if the Korea Times knows better about the financial decisions of Samsung than Samsung.

    I'm very sure Samsung did their homework, made all the calculations, and figured that it'd be more profitable to sell their NANDs to Apple than try to sell a few extra thousand of their MP3 players.

  1. bleee

    Joined: Dec 1969

    0

    if not samsung than...

    Someone else, Apple is the big fish in the pond for the "moment" and if Apple doesn't get a deal from Samsung than they will from someone else. They could compete with the iPod with Samsung mp3 players or risk losing against the iPod and not have the Apple contract.

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