Samsung Forced To Release New Chips Early After Apple Rumor Causes Stock Plummet


These chips will end up in Apple devices, despite what DigiTimes reports.
These chips will end up in Apple devices, despite what DigiTimes reports.

Samsung has reportedly launched its next generation of 20-nanometer mobile memory chips early in a bid to repair the damage caused by a throwaway rumor from DigiTimes that claimed Apple was gearing up to shun Samsung’s DRAM chips in favor of those from Elpida Memory.

Samsung’s share price plummeted by 6% shortly after the rumor began to circulate, costing the Korean company around $10 billion in market value.

Several unnamed Samsung executives told reporters from The Korea Times today that its new generation of ultra-thin 4GB memory chips will be used in Apple devices. That contradicts Wednesday’s DigiTimes rumor that claimed Apple has “booked up” 50% of the DRAM output from Elpida Memory’s Hiroshima plant.

According to today’s report from The Korea Times, that rumor is “exaggerated,” and Apple has no plans to reduce its orders from Samsung:

“Samsung is increasing the output of mobile DRAMs using a finer 36-nanometer processing technology for Apple as planned. It doesn’t have plans to reduce production of the chips,’’ said another senior Samsung executive in a telephone interview with The Korea Times.

“The report from Taiwan is exaggerated. Apple is always looking to diversify its part-sourcing channels. In flat screens and chips, Apple is sourcing parts from various clients that include Samsung, however, that doesn’t mean we are losing our edge as Apple’s top-tier client,’’ said the executive.

The press release Samsung issued today wasn’t scheduled to go live until next Monday, May 21, but it had to be brought forward in an effort to reduce shareholder concerns.

This just demonstrates the impact Apple and its business can have on the industry, and how one seemingly fabricated rumor can do so much damage.

Source: The Korea Times

Via: The Next Web