14 DAY TRIAL // Apple has become a major consumer of flash memory, with recent estimates indicating that the company buys 25 percent of the world's production for use in its devices. Flash memory has become extremely important to Apple as iPods and iPhones depend on it, in the same way future models of Mac portables will. Not surprisingly, reports of shortages and production problems will have a major impact, not only on Apple but also on the manufacturers of the memory.
In a recent report, Apple was said to have turned to Samsung Electronics to fill NAND flash orders that were originally placed with Hynix Semiconductor. The reason behind this move was Hynix itself who was reported to have run into production problems with its 60nm multi-level cell (MLC) process. A Hynix Semiconductor PR spokesperson refuted these claims. While the company does admit to having problems with the quality of a batch of 60nm-made MLC, it also states that the problems have been resolved and that they have no problems whatsoever providing products to Apple. The spokesperson clearly stated that Apple has never shifted orders from Hynix to Samsung.
With Apple being such a major purchaser of NAND memory, it is not surprising that memory manufacturers are doing all they can to put such rumors to rest. Apple itself is a perfect example of what happens when rumors regarding production problems go out of hand and the financial losses involved. With new versions of the iPod expected before the holidays shopping period and the increased capacity that has traditionally been associated with them, it is no surprise that Apple is buying all the memory it can get its hands on. Some have even speculated that the memory capacity of the iPhones was not determined by the costs involved but rather by the shortages of memory that would have resulted from increasing the memory of the devices.