Samsung Moves Up DRAM Roadmap To Calm Apple Rumors

News
By Douglas Perry
published

A report that Elpida may have scored a major DRAM deal with Apple that would negatively impact Samsung has apparently forced the Korean chip company to accelerate its DRAM roadmap.

Samsung has said that it has begun shipping 4 Gb 20 nm mobile DRAM chips on Thursday. The Korea Times followed up by stating Samsung is sending those chips to Apple in particular -- a move that is reportedly ahead of schedule and possibly a sign that the company is looking to calm investors worried about Samsung's relationship with Apple.

Earlier in the week, there was a report that Apple may be shifting at least some of its DRAM orders from Samsung to Elpida and that the company bought up about 50 percent of Elpida's DRAM output. The report has caused Samsung's market cap to drop by almost $10 billion this week alone. There has been no confirmation from Apple or Elpida whether the shift has in fact happened, but it should not be surprising that Apple would consider other DRAM makers to diversify its suppliers, which not only guarantees supply, but offers leverage in negotiations. Apple has always acted in this manner and there is no reason to believe that it would change a winning strategy.

It's also no secret that there are tensions between Apple and Samsung due to lawsuits and counter-lawsuits. Apple is unlikely to be willing to fund its enemy and if it can move production volume away from Samsung, it probably will. Samsung's advantage is technology that is ahead of some of its rivals and that card may lure Apple back into the boat - or convince the company not to leave.

Douglas Perry
7 Comments Comment from the forums
  • A Bad Day
    Interesting. Two enemies that have a hard time of separating.
    Reply
  • zaznet
    Samsung has some of the best tech available for Apple parts and despite the legal wranglings Samsung should continue to want to do business with Apple.

    Sounds like a good time to buy Samsung stock after all the recent short sells.
    Reply
  • igot1forya
    A Bad DayInteresting. Two enemies that have a hard time of separating.You described my parents!
    Reply
  • warezme
    A Bad DayInteresting. Two enemies that have a hard time of separating.How is your wife?...BTW
    Reply
  • eddieroolz
    It's obviously in Apple's interest to source supplies from several vendors for the exact reason mentioned in the article. Only then can Apple ensure that any legal actions Samsung initiates against Apple won't be met with success as Samsung would be choking its own throat.
    Reply
  • john_e
    eddieroolzIt's obviously in Apple's interest to source supplies from several vendors for the exact reason mentioned in the article. Only then can Apple ensure that any legal actions Samsung initiates against Apple won't be met with success as Samsung would be choking its own throat.
    Samsung's advantage is technology that is ahead of some of its rivals and that card may lure Apple back into the boat - or convince the company not to leave.

    Or it can be that Apple will be the one choking if Elpida doesn't provide solid performing DRAMS!!
    If Apple runs back to Samsung with its tail between its legs, I wouldn't be surprised to see Samsung raise its prices, forcing Apple to pay more then their previous agreement before Apple jumped ship and went with Elpida.


    Reply
  • CyberAngel
    Samsung makes the iCPU iTabs+iPhones of iApple
    Reply