Memory deal with Apple may hurt Samsung MP3 sales

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 may cut into sales of its own branded MP3 players, 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."

Filed under: iPod