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