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Samsung faces probe into Apple flash deal

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By LC Angell

Senior Editor, iLounge
Published: Wednesday, November 23, 2005
News Category: iPod

As anticipated last month, the South Korean government is investigating Samsung for allegedly selling NAND flash memory chips to Apple at below-market prices. “We are investigating whether Samsung has been unfairly supplying flash memory chips to Apple at cheaper prices than applied to domestic music player makers,” a spokesman at the South Korean Fair Trade Commission said.

Small South Korean digital music players makers have complained that the special pricing given to Apple is allowing the company to build iPods at price points that they cannot compete with.

Analysts doubted the investigation would have serious repercussions for Samsung. “I don’t think the FTC could impose any restrictions on Samsung as it’s a common business practice for companies to offer lower prices to big-volume customers such as Apple,” said Jay Kim, an analyst at Hyundai Securities.

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Comments

1

“...allowing [Apple] to build iPods at price points that they cannot compete with.”

Don’t Apple products nearly define “price premium”?

Posted by Me on November 23, 2005 at 8:35 AM (PDT)

2

I don’t think this can be so true, the company I work for has a 2gb player for £89.99 and they aren’t half as big as apple...its a £50 price difference, so somewhere, someone is getting much better prices than Apple

http://www.play.com/play247.asp?pa=sr&page=title&r=ELEC&title=852368 incase you’re interested

This comment thread has been heavily edited due to objectionable comments posted by one reader. We will not tolerate the abuse of the comments system and if necessary we will contact ISPs of the individuals concerned.
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Posted by silver_haze20 on November 23, 2005 at 11:42 AM (PDT)

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