Apple Rumor Causes Samsung Stock Value To Take $10 Billion Nosedive

Apple Rumor Causes Samsung Stock Value To Take $10 Billion Nosedive

We here at Cult of Mac love Apple rumors as much as the next guy, but sometimes it’s helpful to be reminded of the power rumors can wield. Samsung’s market value fell 6% on Wednesday to the tune of a $10 billion nosedive. Why? One silly Apple supply rumor.

Taiwanese news site DigiTimes published a rumor on Tuesday with the headline “Apple reportedly books up half of mobile DRAM capacity at Elpida Hiroshima plant.” The report said that Apple was ordering massive amounts of dynamic random access memory (DRAM) chips from Elpida Memory, a competitor to Samsung. You see, while Samsung and Apple may be bitter enemies in the consumer space, they are in bed with each other on the supply chain. Apple is actually Samsung’s most important component customer. Parts of your iPhone were made in a Samsung plant. As you can imagine, even the thought of Apple taking its business elsewhere would cause Samsung to quake at the knees.

Despite the fact that DigiTimes has a track record with more spots than a fully grown dalmatian, the rumor caused significant concern among Samsung’s shareholders. According to Reuters, stock dove 6.2% to a 9-week low. That devalued Samsung’s market cap by $10 billion.

10 billion dollars because of one lousy Apple rumor. That’s the world we live in.

  • ApplePr0n

    Good. They made that money of off the successful ideas of other countries anyway

  • thegraphicmac

    Their stock value didn’t take a $10 billion nosedive, their Market Cap did. The article is correct, but the headline took the more sensationalistic link-bait approach.

    Also, has anyone at this site ever heard the saying about stones and glass houses?
  • Tallest_Skil
    STOP. REPORTING. DIGITIMES’. CRAP.
    We’ve now seen what unsubstantiated rumors can do to both Apple and its competitors. Do the world a favor and stop helping companies lose tens of billions.
  • itsjustcarlo

    Good story, but …

    A Google Search of the Cult of Mac site here. Reveals over 1000 instances of Digitimes being mentioned here. Even even only a third (about 340) of those mentions are actual citations of of Digitimes reporting, it’s a pretty damning number.

    Stop doing it already.
  • Patrick M Phillips

    Good. They made that money of off the successful ideas of other countries anyway

    “countries” don’t have ideas and ideas can’t be “owned” despite the bullshit laws countries make to try to redefine what property is. IP is nothing more than a means of doling out monopoly privilege to the politically connected.

  • Andrew John
    “countries” don’t have ideas and ideas can’t be “owned” despite the bullshit laws countries make to try to redefine what property is. IP is nothing more than a means of doling out monopoly privilege to the politically connected.

    Talk about bullshit. “Politically connected”? What does protecting your work, research and development, using patent laws having anything to do with politics? IP rights protect rich or poor alike. Just because some choose to use these very generous laws to manipulate and troll for money, doesn’t make it some global political conspiracy. Stop smokin’ the weed dude.

About the author

Alex HeathAlex Heath has been a staff writer at Cult of Mac for three years. He is also a co-host of the CultCast. He has been quoted by the likes of the BBC, KRON 4 News, and books like "ICONIC: A Photographic Tribute to Apple Innovation." If you want to pitch a story, share a tip, or just get in touch, additional contact information is available on his personal site. Twitter always works too.

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