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Apple in Talks to Buy Israeli Flash Storage Company Anobit for Over $400 Million

Tuesday December 13, 2011 12:42 am PST by Arnold Kim
As noted by TechCrunch, Calcalist (Hebrew) reports that Apple is considering purchasing an Israel-based company called Anobit for $400-$500 million.

Anobit is a fabless semiconductor company that specializes in flash storage. According to their website:
Anobit provides flash storage solutions for the Enterprise and Mobile markets. It's MSP™ (Memory Signal Processing) technology significantly improves the endurance, performance and cost of flash storage products and systems. Anobit's products are used by world leading flash manufacturers, consumer electronics vendors and storage system providers.
Calcalist reports that Apple already relies on Anobit's technology in the iPhone, iPad and MacBook Air. Apple's interest in the company is related to their ability increase the amount of flash memory storage in a device and improve long term reliability. A Storage-Switzerland article describes the company's MSP technology:
Essentially this means they can detect flash problems in flash cells when they're much older, allowing them to extend the usable life of MLC flash significantly longer than other manufacturers. The net of this ability is Anobit's flash products have much longer endurance than comparable products from other vendors. They claim commercial-grade MLC endurance comparable to that of SLC flash from other manufacturers. Theoretically, this would enable users to replace SLC flash with the more economical MLC products.
A $400-$500 million acquisition price would make Anobit one of Apple's largest acquisitions ever. Prior to that, you have to go back to 1997 when Apple paid $404 million to acquire NeXT, Inc, bringing Steve Jobs back to the company.

Flash memory has been a key component in Apple's products over the past decade. Apple has made strategic bets on Flash storage in the past by pre-purchasing large amounts to ensure a constant supply. Apple's reliance on Flash remains with the ongoing popularity of the iPhone and shift in notebooks to SSD.
[ 116 comments ]


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kalsta
92 months ago

Prior to that, you have to go back to 1997 when Apple paid $404 million to acquire NeXT, Inc, bringing Steve Jobs back to the company.


Now that was a good deal.
Rating: 19 Votes
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adder7712
92 months ago

Flash storage is stupid. The cloud is the future.


There are certain things that I want to have physically stored. I don't really mind flash storage, I'm just hoping >512GB SSDs are within affordable price.
Rating: 15 Votes
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cameronjpu
92 months ago

This move is most likely that Apple can secure flash storage but its more due to the fact that they can now keep their storage prices sky high for the forseeble future. Apple have to be the greediest most extortionate company in the business. They make great products but boy, they are greedy :apple:


All companies are equally greedy (that's the point!). Apple just happens to have products that everyone wants.
Rating: 10 Votes
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CplBadboy
92 months ago

Flash storage is stupid. The cloud is the future.


Yeah it would be if EVeRYONE had access to speedy networks. I think less onboard storage will be the future but ultimately cloud storage has its benefits. They compliment each other well.
Rating: 9 Votes
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grahamnp
92 months ago

Flash storage is stupid. The cloud is the future.


Accessing the cloud is slower than HDD access which flash intends to replace. From a performance standpoint, it is a step backward. Also, what happens when you have no internet?
Rating: 9 Votes
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KnightWRX
92 months ago

With this move and doing their own ARM chip in house, Apple is starting to get very vertical in their supply chain.


Apple still has no manufacturing capabilities. Only design. This is a fab-less company.
Rating: 8 Votes
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Jayse
92 months ago
This would be money well spent for Apple considering Anobit's excellent reputation.
Rating: 6 Votes
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Santabean2000
92 months ago

Flash storage is stupid. The cloud is the future.

Spoken like a true expert...
Flash storage has a big future and Apple is absolutely right to increase its stake in the industry.


Yeah it would be if EVeRYONE had access to speedy networks. I think less onboard storage will be the future but ultimately cloud storage has its benefits. They compliment each other well.


Spot on. Cloud storage is not going to become a mainstream substitution any time soon, if at all. I think local storage will always have a role, diminishing yes, but still important.
Rating: 6 Votes
Avatar
CFreymarc
92 months ago

This would be money well spent for Apple considering Anobit's excellent reputation.


With this move and doing their own ARM chip in house, Apple is starting to get very vertical in their supply chain.
Rating: 6 Votes
Avatar
Superken7
92 months ago

Flash storage is stupid. The cloud is the future.


Try booting off the network and doing everything off the network: you'll soon find it is a nightmare, even if you had 4G speed everywhere, everytime. Not to mention issues related to energy efficiency!
Flash storage isn't going anywhere, you NEED to locally store and cache stuff. Maybe in 20 or 30 years we don't need local storage, but until then I betcha we do.

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I'd rather have SLC over MLC.

Although, I have to wonder if Apple's recent lawsuits against the entire industry has forced them to find alternatives, I can't imagine Samsung being too happy providing any more services for Apple.


Apple is a customer for Samsung. I would say its the other way around: Apple is not too happy giving Samsung loads and loads of their money which they use for developing competing products such as samsung smartphones running Android :)
I bet Samsung is very happy with Apple as a customer.
Rating: 6 Votes

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