Apple Wary of Long-term Deals Amid High Flash Memory Prices

(Photo: Brandon Shigeta/Flickr)

In a bit of irony, Apple reportedly is hesitating to sign longterm deals with flash memory suppliers because of high prices which some blame on Apple’s heavy use of the chips in a growing array of devices. Although demand is weak for the flash memory in some areas, prices remain high due to chip makers desire to please large customers.

The reason why prices can be so high with a weaker demand is the “major suppliers are limiting their supply to the market,” reports trade publication Digitimes. The tight supply could drive flash memory prices even higher and mean suppliers “may not be able to satisfy customer demand in the second quarter,” Digitimes added Tuesday.

Apple, however, could start striking longterm deals with its flash memory suppliers in the second quarter of 2010, the publication reports, citing unnamed industry sources.

The Cupertino, Calif. company has often been blamed for pushing flash memory prices higher. Most recently, a report said the iPad’s use of large quantities of flash memory could slow plans by PC makers to transition to solid-state drives. Earlier this year an analyst claimed the iPhone was creating an “insatiable demand” for flash memory. The refrain already begun in 2010 was carried over from 2009, when Apple repeatedly was blamed for manipulating flash memory prices.

[via AppleInsider and Digitimes]

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