View this article at: http://dev.macnn.com/articles/05/11/23/samsung.investigated
Wednesday, Nov 23, 2005 7:40am
Korea investigates Apple-Sa...
Samsung is being investigated by the South Korean government for allegedly selling NAND flash memory chips to Apple at half their market value. The Fair Trade Commission (FTC) said on Wednesday that the Samsung is suspected of "dumping" 2GB and 4GB flash memory chips to Apple, which are used in Apple's popular iPod nano, a practice that is hurting other South Korean memory manufacturers, according to The Korean Times: "FTC Chairman Kang Chul-kyu indicated last month that his agency might take action against an alleged unfair deal between Samsung and Apple, if local MP3 players request the probe, making it clear that the investigation would be very thorough." Samsung, however, claims it has maintained margins of 30 percent, which would make the dumping claims untenable, since such profits could not be generated by selling memory at half of its fair market value.