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Digitimes' poor track record has been thrust into the spotlight in recent days, but that hasn't stopped one of the Taiwanese news site's reports from having a major effect on stock prices for Samsung and Hynix. The report from earlier this week claims that Apple has placed "huge" orders for DRAM chips with Elpida, soaking up half of the capacity at the firm's main plant in Hiroshima, Japan.

elpida_sdram_ipad_3.jpg



1 GB of Elpida DRAM in third-generation iPad (Source: iFixit)
As noted by Reuters, the rumor has had a significant effect on fellow DRAM manufacturers Samsung and Hynix, with Samsung losing $10 billion in market value today in a 6% stock decline. The smaller Hynix was down nearly 9%
"It looks like Apple doesn't want to see Samsung and hynix dominate the chip market. Apple wants to maintain its bargaining power by keeping Elpida running," said Choi Do-yeon, an analyst at LIG Investment & Securities.
Elpida filed for bankruptcy in late February, and Micron has emerged as a likely acquirer for the company. The combined Micron-Elpida would be a strong competitor in the DRAM market, sparking concerns for others in the competitive industry.

DRAM, the volatile memory used to hold active applications and other data for use while a device is in operation, is a commodity in the consumer electronics market, with Apple routinely sourcing from multiple suppliers and shifting orders to achieve the best pricing.

Article Link: Samsung's Market Cap Takes $10 Billion Hit Amid Rumors of Apple DRAM Deal with Elpida
 

WildCowboy

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Jan 20, 2005
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Headline's a bit misleading, samsung hasn't taken a "$10 billion hit".

How is it misleading? It specifically says Samsung's market cap, which is indeed what dropped by $10 billion.
 

Peace

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Apr 1, 2005
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If this is true and Apple goes with more vendors then samsung has something more to worry about.


Good for Apple and Elpida. Especially good for Micron if they do acquire Elpida.
In the old days I used to buy all my memory from Micron.
 

Digitalclips

macrumors 65816
Mar 16, 2006
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Does the take over my Micron go ahead then? Or does this mean the company will be OK after all with an order of this magnitude? If the take over is on then Micron must be smiling ... perhaps they knew in advance?
 

rjohnstone

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Dec 28, 2007
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How is it misleading? It specifically says Samsung's market cap, which is indeed what dropped by $10 billion.
To call it a "hit" is sensationalism at its finest.
It's called business as usual.
Hell, Apple takes bigger hits every other day.

Where's the big story about how Apple's market cap has dropped nearly $80B in the last 4 weeks?
The reality... nobody cares. This is how the stock market operates.
 

Peace

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To call it a "hit" is sensationalism at its finest.
It's called business as usual.
Hell, Apple takes bigger hits every other day.

Where's the big story about how Apple's market cap has dropped nearly $80B in the last 4 weeks?
The reality... nobody cares. This is how the stock market operates.

This story isn't really about the stock market. It has larger ramifications.
 

One Bad Duck

macrumors member
Sep 18, 2005
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Sensationalism?

Where's the big story about how Apple's market cap has dropped nearly $80B in the last 4 weeks?
The reality... nobody cares. This is how the stock market operates.

I can see your point however the articles main focus is the fact all this has come from just a rumour from a site that isn't even that accurate with their "rumours". Seems like there's no such thing as crying Wolf on rumour sites.
 

rjohnstone

macrumors 68040
Dec 28, 2007
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This story isn't really about the stock market. It has larger ramifications.
Explain the "larger ramifications".
Elpida lacks the production capacity of Samsung and their QA has not been the best in the past few years.
Part of why they are in bankruptcy.
Apple's order "may" save them, but only time will tell on that front.

Samsung will do just fine with or without Apple's memory purchases.
 

JohnDoe98

macrumors 68020
May 1, 2009
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I can see your point however the articles main focus is the fact all this has come from just a rumour from a site that isn't even that accurate with their "rumours". Seems like there's no such thing as crying Wolf on rumour sites.

And if the rumors turns out to be false, the market will correct itself, so again what's the point?
 

Peace

Cancelled
Apr 1, 2005
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Explain the "larger ramifications".
Elpida lacks the production capacity of Samsung and their QA has not been the best in the past few years.
Part of why they are in bankruptcy.
Apple's order "may" save them, but only time will tell on that front.

Samsung will do just fine with or without Apple's memory purchases.

If samsung loses one of it's biggest customers it will affect their bottom line.
 

dokujaryu

macrumors 6502
May 3, 2011
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Irvine, California
Well, maybe this isn't just diversification. I mean, Apple couldn't keep up with initial demand of most of their products. Could it also be another way to speed up production?
 

Skoopman

macrumors 6502
Sep 24, 2011
318
2
Does the take over my Micron go ahead then? Or does this mean the company will be OK after all with an order of this magnitude? If the take over is on then Micron must be smiling ... perhaps they knew in advance?

Define "OK". Elpida isn't even listed on the Tokio Stock Exchange anymore... This rumor is really fishy.
 
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