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Apple to Add Chinese NAND Flash Storage Supplier for Future iPhones – Here’s Why

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Feb 14, 2018
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Keeping component pricing low by keeping several suppliers to provide a single hardware component is the approach that Apple has relied on for quite some time now and its growing list of suppliers can add on more name to it, according to the latest report.

Apple in Talks With State-Backed Yangtze Memory Technologies to Buy NAND Flash Chips From it for iPhone Models That Will Be Sold in China

According to Nikkei, the reported move that Apple has taken is going to be the first time that a U.S.-based company is going to start purchasing from a Chinese memory chipmaker. In addition to adding a huge boost to the local sector, Apple will be able to negotiate a better pricing for iPhone and iPad NAND flash memory.

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It is unclear if the tech giant is being pressured to purchase these components from Chinese manufacturers. China has a habit of resorting to such tactics in a move that applies pressure on foreign technology companies that want to operate within the country. An industry executive states that Apple partnering with the firm means that it will be able to increase its smartphone growth in this region.

Apple is currently purchasing NAND flash memory chips for its iPhones from Toshiba of Japan, Western Digital of the U.S., SK Hynix and Samsung Electronics of South Korea. It is the world’s biggest consumer of these chips, taking roughly 15 percent of overall global demand of 160 million GB in 2017, according to Sean Yang, an analyst at a Shanghai-based research company CINNO. Due to the pricing fluctuations of NAND flash memory, it will be seen as a key move for Apple if it brings the manufacturer on board.

According to industry watchers, NAND flash memory price is expected to increase in the future, thus increasing the price of the products it is going to be incorporated in. It is an essential and one of the most expensive pieces of components to be present in a tablet or smartphone, so adding more suppliers to the mix will always help Apple’s pricing of future devices.

Do you think Apple is going to be making the right move with this deal? Tell us down in the comments.

Source: Nikkei

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