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Apple Announces Long-Term Supply Agreements for Flash Memory

configure   on 22 November 2005 - 12:37 · 22 comments & 5547 views

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Apple® announced that it has reached long-term supply agreements with Hynix, Intel, Micron, Samsung Electronics and Toshiba to secure the supply of NAND flash memory through 2010. As part of these agreements, Apple intends to prepay a total of $1.25 billion for flash memory components during the next three months.

“We want to be able to produce as many of our wildly popular iPods as the market demands,” said Steve Jobs, Apple’s CEO.

iPod® and iTunes® are leading the digital music revolution, providing the best way to listen to music on-the-go, at home and in the car. With over 30 million iPods sold, the iPod is the world’s most popular digital music player and the iTunes Music Store is the number one online music store with over 600 million songs purchased and downloaded worldwide. The iPod economy also continues to flourish, with over 1,000 third-party iPod accessories now available.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, and iLife and professional applications. Apple is also spearheading the digital music revolution with its iPod portable music players and iTunes online music store.

News source: Apple - Press Release


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Post a comment · Send to friend Comments · There are 22 additional comments
(4 replies) #1 Toastyone on 22 Nov 2005 - 12:39
“We want to be able to produce as many of our wildly popular iPods as the market demands,”

Nice now maybe you could lower the price point steveo
#1.1 dp123 on 22 Nov 2005 - 17:27
First poster who can't legitimately claim to having done a price comparison between Apple music players and others.
#1.2 Toastyone on 22 Nov 2005 - 17:48
Yeah I have never done a price comparison, mainly because I don’t really want any other mp3 player besides the two ipods I own…. I just think it would be great if they were a little cheaper
#1.3 dp123 on 22 Nov 2005 - 19:10
So you accuse them of high prices without verifying and don't want one, but you want lower prices? Mmmkay.
#1.4 Croquant on 22 Nov 2005 - 19:51
He didn't acuse them on anything, dp123. He just sugested that they should lower their prices. Personaly, I'll take lower prices over higher prices any day.
(5 replies) #2 nvizible on 22 Nov 2005 - 13:16
Hmm... interesting news. However, one can see immediately that it is an apple marketing statement. As such, it would be more appropriate if only the "news" part of the press release were posted, forsaking the "propoganda" (the "ye, look at us, we're so good" ) part of the release. If people really want to hear how apple did so much for the world of PC, they can always find out elsewhere!

On a different note: This sounds good. Hopefully it will mean that apple has secured more competitive prices, meaning that we, the consumers, get lower prices! (Yes, I know it's asking a lot of Apple, but we can all hope! )
#2.1 dp123 on 22 Nov 2005 - 17:28
Second poster who can't legitimately claim to having done a price comparison between Apple music players and others.
#2.2 hoginhaze on 22 Nov 2005 - 18:05
How is it that you make pointless remarks on every topic related to Apple? Give it a rest.
#2.3 Shadrack on 22 Nov 2005 - 18:10
Yeah..this is just a bunch of PR w/o any real news in this post. Ok...so they are going to be producing more iPods. Shocking !

QUOTE
Second poster who can't legitimately claim to having done a price comparison between Apple music players and others.


What the hell do you want dp123? A cookie? What amazing observational skills you have. Christ... So consumers want cheaper products. What do you exactly have against that? Its a pretty common thing.
#2.4 dp123 on 22 Nov 2005 - 19:13
I'm simply pointing out a misinformed comment that should be ignored because anyone doing legitimate price comparisons would see that Apple is either quite competitive or cheaper than its competition. If you want to bitch and moan about that, go ahead, that's your problem. It is, however, a true and valid point, and I do think it's important to correct the misinformed.
#2.5 Shadrack on 23 Nov 2005 - 06:22
QUOTE
I'm simply pointing out a misinformed comment that should be ignored because anyone doing legitimate price comparisons would see that Apple is either quite competitive or cheaper than its competition. If you want to bitch and moan about that, go ahead, that's your problem. It is, however, a true and valid point, and I do think it's important to correct the misinformed.


No one is making the point that apple is currently non-competitive in the market, so why are refuting these accusations that don’t exist in any of the comments you replied to?

QUOTE
Hopefully it will mean that apple has secured more competitive prices


that is pretty far from "Apple is overpriced compared to brand x, lower your prices greedy Apple Corporation!!" But you respond to it like that is what he has said. In turn, I must correct your mal-comment. If you aren't really responding to someones comment, maybe avoid "replying" and instead just post your own comment. But don't put more information into what someone has said then what they have actually said.
(1 reply) #3 Chicane-UK on 22 Nov 2005 - 13:45
I think, for the features you're getting, the iPods aren't terribly priced.

But I certainly wouldn't complain if the prices tumbled a bit. HDD and Memory prices are probably as low now as they ever have been and I just don't see how these aren't offset against the prices vendors charge for their memory and HDD based MP3 players!
#3.1 gunnerhkjp on 22 Nov 2005 - 14:05
I agree. Apple has used its economy of scale to pump out good music players at a very reasonable price.

Competitors are going to have a tough time.
#4 chimera963 on 22 Nov 2005 - 14:33
yay flassssssssh memory! I hope it's lower in cost!
(1 reply) #5 rIaHc3 on 22 Nov 2005 - 14:33
Go Apple.....altho I personally hate the iPod.
#5.1 matt74441 on 22 Nov 2005 - 15:11
Well thats to be expected. I've seen almost every version of the iPod since the first generation ones and they haven't really won me over yet.
(1 reply) #6 lexor on 22 Nov 2005 - 15:49
umm... isn't only iPod mini and shuffle have flash drives and now with mini fased out in favor of shuffle, that's only one player and the rest are microHDD based? Why does Apple need this much FLASH memory? I never thought iPod shuffle was that much more popular than its bigger brothers. I would've expected Apple to contract more HDD makers.
#6.1 virtorio on 22 Nov 2005 - 19:58
The iPod Mini was replaced by the iPod Nano (which also uses Flash Memory), not the iPod Shuffle.
(1 reply) #7 panacea on 22 Nov 2005 - 16:51
actualy no. ipod nano is flash memory. look at its size, did you really think that they have a harddrive fit in there? they are not magitians you know.
#7.1 lexor on 22 Nov 2005 - 23:37
Well considering they already have 4GB HDD the size of my thumb nail (digit-life caried the story a while back) I don't see how size of nano is an issue. Though flash does give faster speed and needs less battery juice.
#8 Cubiz on 22 Nov 2005 - 23:11
Good news
#9 Virtues of Evil on 23 Nov 2005 - 14:37
http://today.reuters.com/news/NewsArticle.aspx?type=businessNews&storyID=2005-11-23T024614Z_01_ROB308904_RTRUKOC_0_US-KOREA-SAMSUNG.xml

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