New iPod Touch Models and Chinese iPhone Launch Constrain Worldwide Flash Memory Supplies

How many 3G ipt will be sold during the holiday season.. I'm guessing around 2 millions

I'm wondering what kind of hardball Apple is playing with suppliers. "Either make us top-priority on NAND shipments, or we drop you entirely. You can't afford to lose our business."

there is a typo

will halve???

or is it HAVE????????

there is a typo

will halve???

or is it HAVE????????

I think it's correct, Samsung have told Taiwanese customers it's halving its supply to them, the rest is going to Apple.

I'm wondering what kind of hardball Apple is playing with suppliers. "Either make us top-priority on NAND shipments, or we drop you entirely. You can't afford to lose our business."

The problem with quick blog posts like this is that there is no room for context.

In fact, apple has pre-paid in excess of a billion dollars to NAND flash memory suppliers, which if you know anything about business is hugely beneficial to the cash flow of those suppliers, many of whom run on razor thin margins. When you earn minimum wage, you'd rather not wonder if your employer will give you your paycheck on Friday as promised -- Apple eliminated that risk.

An article for further reading: http://www.iphonestalk.com/gone-in-a-flash-apple-pays-for-large-amounts-of-flash-memory-5579/

Google will also provide additional context, if you're interested.

To summarize, this is a case of Apple leveraging their amazing cash position by offering a carrot to suppliers rather than threatening them with the stick.

Alan :apple: Falcon

In fact, apple has pre-paid in excess of a billion dollars to NAND flash memory suppliers, which if you know anything about business is hugely beneficial to the cash flow of those suppliers, many of whom run on razor thin margins. When you earn minimum wage, you'd rather not wonder if your employer will give you your paycheck on Friday as promised -- Apple eliminated that risk.

An article for further reading: http://www.iphonestalk.com/gone-in-a-flash-apple-pays-for-large-amounts-of-flash-memory-5579/

Google will also provide additional context, if you're interested.

To summarize, this is a case of Apple leveraging their amazing cash position by offering a carrot to suppliers rather than threatening them with the stick.

Alan :apple: Falcon

Exactly. The $1B is just this season. They have done that or a significant fraction for the past few years as well. So those suppliers love this customer. :)

The massive ramp of Chinese iPhones may have to focus on 4 and 8 gig capacities to not only fit in the lower price model there but also to simply meet unit demand. Not many people really need more than 8 gig on their iPhone if they synch it more than twice a week.

Apple may need to go to wireless syncing as a user option as well.

Rocketman

To summarize, this is a case of Apple leveraging their amazing cash position by offering a carrot to suppliers rather than threatening them with the stick.

Tomato/tomato. :) The difference between the two is a matter of perspective. What you wrote is consistent with my point, Apple is in a position to demand being at the front of the queue, and I wondered to what extent they do.

...... Not many people really need more than 8 gig on their iPhone if they synch it more than twice a week.

Apple may need to go to wireless syncing as a user option as well.

Rocketman

For anybody that has owned an iPhone or Touch for awhile they will have learned that 8GB is not enough. Not even close if you are intent on using more than a few apps or some of the GPS software out there.

Oh I really don't know what syncing has to do with it. Normally syncing causes a loss of flash space.


Dave

....What you wrote is consistent with my point, Apple is in a position to demand being at the front of the queue, and I wondered to what extent they do.

Wonder, do you not keep track of the news or what people have written here? Apple pays up front with CASH some quarters a half Billion dollars at a time. If you don't understand that such payments secure your supplies then you don't understand business.

Think of it this way you walk into a luxury car dealer with a suitcase full of cash, would you not expect awfully good service if you announced your intention to spend that money in the establishment.

Dave

Wonder, do you not keep track of the news or what people have written here? Apple pays up front with CASH some quarters a half Billion dollars at a time. If you don't understand that such payments secure your supplies then you don't understand business.

Think of it this way you walk into a luxury car dealer with a suitcase full of cash, would you not expect awfully good service if you announced your intention to spend that money in the establishment.

Apple is getting VERY good service if other customers' shipments are being halved in order to fulfil Apple's orders. :)

As I stated in my first post, they can't afford to lose Apple's business. The only question for me is, did they voluntarily cut back supply to other customers; or did Apple pressure them to do so.