Saturday, October 10, 2015
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
3Q15 Hard Disk Drive Shipments Report
Japanese Fund may Invest In Sharp: report
ASUS Upgrades Its ROG Gaming Lineup
ITC Says Samsung Did Not infringe Nvidia's Patents
ARCHOS and Sikur Ensure Your Privacy with GranitePhone
Firefox To Switch Away From Plugins
Apple Removes Apps From Online Store
PC Shipments Kept Falling In 3Q
Active Discussions
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
How to burn a backup copy of The Frozen Throne
Help make DVDInfoPro better with dvdinfomantis!!!
Copied dvd's say blank in computer only
menu making
Optiarc AD-7260S review
 Home > News > General Computing > Apple F...
Last 7 Days News : SU MO TU WE TH FR SA All News

Thursday, September 05, 2013
Apple Faces Memory Challenges Without Samsung

Apple's formidable status may not help as it tries to out-innovate Samsung, its primary competitor. That's because any major innovation would likely demand greater memory capabilities - and Apple has no memory making capabilities, while Samsung is the memory market leader.

Samsung is the leading supplier of both dynamic random access memory (DRAM) as well as NAND flash, both of which are essential components in nearly all of today's consumer electronics, including smartphones and tablets where Apple enjoys great success, via its best-selling iPhone and iPad devices.

In the first quarter, Samsung's revenue of $4.6 billion accounted for 36 percent of the total DRAM and NAND memory market of $12.8 billion. The company's output exceeded that of No. 2 SK Hynix and No. 3 Toshiba combined. Samsung was also bigger than the accumulated totals of Toshiba, No. 4 Micron Technology and fifth-ranked Elpida Memory, as presented in the attached figure.

"While the argument can be made that Apple sees some benefits by not sharing critical prototype design information with Samsung, the fact remains that Apple limits its options by not doing business with Samsung, which places Apple at a disadvantage," said Mike Howard, senior principal analyst, DRAM & Memory, for IHS. "The difficulties presented by this challenge become even more acute considering that the memory industry continues to consolidate, especially in DRAM. The recent closing of Micron's acquisition of bankrupt Elpida means there are now just three major DRAM developers and four NAND developers left. As Apple?s memory suppliers get bigger because of consolidation, they are likely to gain more bargaining leverage. This is a trend all memory buyers will face, and Apple - even with its heft - is not exempt."

Another obstacle for Apple could be that its memory suppliers are reluctant to develop custom products for Apple. Custom parts are risky, and Apple's aggressive procurement tactics - negotiating by offering to buy at some of the lowest pricing - begets no love from the industry. Without custom products, Apple is forced to use off-the-shelf products that make innovation and differentiation more difficult.

But perhaps the most significant risk for Apple is that Samsung has complete control over its memory future. The South Korean electronics giant controls all of the major components that go into a smartphone or a tablet, such as the screen, the applications processor and the memory. Moreover, Samsung's robust smartphone market share means it enjoys the requisite demand for designing and building fully custom products that it may choose not to make available to the market at large.

Apple, in contrast, has no such powers at its disposal, and remains at the mercy of its suppliers. One reason Apple has multiple sources for memory components is precisely because it can ill afford to be dependent on any single provider.

Apple's options to address its memory challenge fall roughly into one of three categories: greenfield, partnership or acquisition. In effect, this means it could buy a memory design company to develop its own custom memory products; it can partner with memory companies; or it can acquire a large existing memory producer.

For the last option, Samsung is clearly not a candidate, while Toshiba and SanDisk seem unlikely because they only make NAND and are already in a partnership. SK Hynix has the appropriate product mix, but national concerns would likely make the deal difficult to swallow for South Koreans.

The only U.S.-based memory producer, Micron, could be a logical candidate. However, Apple's requirements would strain its capabilities severely - unless the additional capacity brought by Micron's purchase of Elpida were included, which may then give it too much excess capacity if solely devoted to Apple's concerns.

Super Talent Releases NGFF SSDs For Mobile Computing        All News        IFA: New All-in-One PCs From HP
New Chrome Apps Marry Desktop With The Cloud     General Computing News      Microsoft Wins Patent Trial Against Motorola

Get RSS feed Easy Print E-Mail this Message

Related News
Apple Removes Apps From Online Store
Apple's iBooks To Offer Enhanced Editions of Harry Potter Series
Apple Brings Apple Music, iTunes Movies And iBooks in China
OS X El Capitan Available as a Free Update
Apple's A9 SoC Is TSMC 16nm FinFET and Samsung Fabbed: report
New iPhones Hit Stores
Apple Unveils The Top 25 Apps Hit by Malware
Apple's Project For Own Electric Car Is Still Years Away
Apple Says iOS9 Runs In Half iPhones Already
Hackers Targetted Apple App Store
Apple Suggests Fix For iOS 9 'Slide to Upgrade' Bug
Apple iOS 9 Update Causes Headaches To Users

Most Popular News
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2015 - All rights reserved -
Privacy policy - Contact Us .