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Apple Slurps Up Samsung's NAND Flash for iPhone 3G

Thursday, July 3rd, 2008 at 1:35 PM - by

Samsung Electronics has advised their customers that a huge order from Apple for 50 million 8 Gb NAND flash memory chips will force them to reduce their available supply to them, according to DigiTimes on Wednesday.

That translates into about 6.25 million 8 GB sets for the Apple iPhone and other products.

As a result of the order, Samsung will have to sharply cut available NAND flash to its other customers in July.

Apple has previously placed and order for 25 million 8 Gb sets in June. (3.13 million 8 GB sets.)

Apple has announced both 8 GB and 16 GB iPhones. In addition, Apple sells 8, 16 and 32 GB iPod touches. How the orders will partition is unknown and will depend on demand for each different product.

It has been estimated that Apple will have to sell 7.7 million iPhones in the second half of 2008 to meet their 10 million goal. That's because Apple has been largely out of stock of the iPhone 2G since the middle of May and had only sold abut 2.3 million in the first five months of CY08.

If the domestic and international appeal of the iPhone 3G is any indication, Apple will be placing more orders for NAND Flash in the coming months, putting a further squeeze on the plans of Samsung's other customers.

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A guest said: (hide)

Thu Jul 03, 2008 2:02 pm

Why are you dividing 50 by 8? The order is for 50 million 8GB chips not 50 million 1GB chips. Those 8GB chips will be go into 8, 16, and 32 GB devices. Ordering enough for only 6.25 million 8GB devices does not make any sense.

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j.martellaro said:

member since 07 Dec 2006 with 97 posts, TMO Staff, send him a message or view his profile

Thu Jul 03, 2008 2:46 pm

I take DigiTimes at their word. 8 Gb = 8 gigabits. You combine 8 of them to form 8 gigabytes (GB) of memory -- if desired.

Also, I surmise that taking delivery of enough memory for 50M iPhones now wouldn't be good inventory management and wouldn't take advantage of sequentially dropping prices over the next year.

-JM

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A guest said: (hide)

Sat Jul 05, 2008 10:23 am

I think you are correct about the calc re the 8GB memory. The real question is if they have both the iphone and the Ipod Touch at 8GB, how will they allocate the supply.

I predict that Apple will end the 8gb iPod Touch after the current rebate offer ends on 9/15.

They will reduce Touch to 16GB and 32GB, at prices of $299 and $399, carry only one classic ipod at 160GB.

Based on nothing but the juice of the universe

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