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Apple Continues to Create Industry-Wide Flash Memory Shortages

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Apr 12, 2001
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DigiTimes reports that Apple's iPhone and iPod models have continued to put pressure on worldwide supplies of NAND flash memory, soaking up enough of the industry capacity that demand now exceeds supply. The shortage is expected to continue through the remainder of 2009, corresponding with the holiday season that should drive sales of Apple's devices.
Taiwan-based memory module houses are moving to diversify their NAND flash suppliers to minimize procurement risk, according to industry sources. NAND flash supply has reportedly become tighter as major chip producers Samsung Electronics, Toshiba, Micron and Hynix Semiconductor favor demand for Apple devices.

Taiwan's module makers have relied heavily on Samsung for NAND flash supply, but they are likely to increase their orders to IM Flash now, the sources commented.
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A brief rebound is expected in early 2010 that would allow supplies to again exceed demand, but forecasts show another, larger dip into negative territory for supply/demand ratios later in 2010 as smartphone sales are expected to increase amid improving economic conditions.

Article Link: Apple Continues to Create Industry-Wide Flash Memory Shortages
 
Article Link
https://www.macrumors.com/2009/10/09/apple-continues-to-create-industry-wide-flash-memory-shortages/
Dumb question - If the price of flash memory goes up, how does it affect the overall price of RAM?
 
You know you're company is doing well when manufacturers worldwide can't keep up with the demand of your business.

Heck, do they even need to release a financial report? How 'bout they just say "we've caused an international flash memory shortage" and add a John Madden "boom" for the theatrical effect. :D jking
 
ProwlingTiger said:
You know you're company is doing well when manufacturers worldwide can't keep up with the demand of your business.

Heck, do they even need to release a financial report? How 'bout they just say "we've caused an international flash memory shortage" and add a John Madden "boom" for the theatrical effect. :D jking
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Apple are certainly contributing. I think the biggest buyer of NAND flash memory is still SanDisk though - Apple used to be number three but might be number two now.

The biggest driver here is the overall growth of the smartphone industry which, of course, Apple have been a big part of.
 
AWESOME.

Demand leads to greater manufacture.
Greater manufacture leads to lower prices.
Lower prices means wider use.
...and that means we're closer to SSDrives in computers.

These spinning disks are a crashful nuisance.
 
Lesser Evets said:
AWESOME.

Demand leads to greater manufacture.
Greater manufacture leads to lower prices.
Lower prices means wider use.
...and that means we're closer to SSDrives in computers.

These spinning disks are a crashful nuisance.
Click to expand...

While eventually we may see that result, I think you've forgotten a basic rule of economics. When demand exceeds supply, prices rise. If you have a limited amount of a commodity, and there are more people trying to get ahold of it than you have enough of it to supply, you can charge more for it. Prices only fall if the supply exceeds the demand.

Now, where your theory may pay out is if the increased revenues allow these manufacturers to increase their production capacity, in which case the memory will be cheaper to produce, and once the supply increases again, we may see prices fall, but in the short term I would predict the prices will actually rise (of course excluding existing contracts that prevent that for certain companies, likely including Apple).

jW
 
mr_matalino said:
Dumb question - If the price of flash memory goes up, how does it affect the overall price of RAM?
Click to expand...

RAM is not made using flash memory. (Flash is nonvolatile, meaning its contents remain even without power. A hard drive is also nonvolatile. RAM is volatile, which is why losing power to your computer when you're working on it is an unfortunate occurrence and why [unless the contents of RAM are written to the HD] your computer must still use a bit of power in sleep mode.)

Basically, they're different technologies, so there is no effect.
 
Mal said:
While eventually we may see that result, I think you've forgotten a basic rule of economics.
Click to expand...

I could set down in an intermediate area too and just say: we have no NAND anymore! PANIC! But, yes, the future is SS memory for drives and media in stores, etc. instead of disks of any sort. This will force us there, but yes, it won't happen tomorrow. Or next year. Give it a couple years or maybe more.
 
Apple has nothing to do with this. There was a worldwide surplus of NAND manufacturing. This drove prices so low, it put many NAND manufacturers out of business. The excess capacity has finally disappeared from the market and now prices can stabilize at a reasonable level. This is good news for IC manufacturers, but bad news for everybody else.
 
koobcamuk said:
Yeh. Shortages of technology are not a good thing, unless it drives new technology, which I doubt this is.
Click to expand...

Its bound to happen though. Apple has been notorious for hoarding NAND/Flash memory. This isn't a first. Apple almost killed Samsungs NAND supply a few years ago by buying almost all of it.
 
That graph labelled Supply/Demand is clearly not Supply/Demand (note the negative numbers). What is it? (Supply-Demand)/Supply ?
 
But flash memory is certainly used in A LOT more items than just Apple products, I mean c'mon. What about the latest generation of flash-based camcorders, TV's, handheld gaming devices, digital picture frames, industrial applications, audio electronics and on and on...

I'm sure Apple's sales do sway the market some but not as much as we'd all believe.
 
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