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Apple accused of manipulating NAND flash prices


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Industry insiders say that Apple is using ethically dubious means to secure lower prices for NAND flash memory chips, used mainly in its iPod and iPhone devices. The practice is said to artificially deflate flash prices, casing harm to the NAND industry as a whole.

According to The Korea Times, Apple is asking for larger volumes from its suppliers, like Samsung and Hynix, than it actually ends up buying. This causes multiple suppliers to ramp up production in anticipation of large orders, inflating supply and driving prices down. This gets Apple a really great price—padding its healthy margins—but leaves manufacturers with a glut of flash chips.

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