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Korean MP3 manufacturers unhappy with Samsung over flash memory discounts to Apple.

Ciber

Ciber

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Source.


"Domestic MP3 Firms Sulk at Apple?s New Player

Korean MP3 player makers are miffed by the release of a new product by world market leader Apple that they say is cutting corners by using Samsung Electronics flash memory chips.
Apple Computer unveiled its ultra-lightweight i-Pod nano flash memory player on Thursday (local time). The U.S. company holds 50 percent of the global market share with its iPod series.

The i-Pod nano can store up to 1,000 songs or 4 GB, the biggest storage capacity yet for a flash memory player. The new MP3 players cost US$249 for the 4 GB version and $199 for 2 GB, about half the price of existing products. Apple president Steven Jobs said the i-Pod nano was the most groundbreaking MP3 player since the iPod was launched.

The domestic MP3 player industry is sulking, saying the iPod nano owes its exceptionally low price to Samsung Electronics. ?Memory chips affect more than 50 percent of MP3 players' prices. Apple presumably bought the flash memory chips at a 50 percent discount from Samsung.? But Samsung Electronics executive Joo Woo-sik defends the company. ?I can?t tell you the discount rate, but it stands to reason that we expand the range of discount rates for a big buyer like Apple,? he said. "Samsung didn?t mean to do any harm to domestic MP3 manufacturers.?

But they are unhappy. Reincom spokesman Kim Dong-hwan said, ?We can hardly declare a price war with Apple. We?ll counter Apple?s challenge by releasing new concept products.?

(englishnews@chosun.com )"


Well, so much for all the people here saying the nano is overpriced.
 

just a buncha whiners.

only apple can convince an assload of people to buy 2-4gb flash memory units. those korean companies can only get people to buy 64-512mb players with low prices. they couldn't sell enough 4gb units to get the same volume price.
 
Originally posted by: Eli
Boofsckinghoo.

What is the big deal again?
Click to expand...

Basically that they are gonna get owned even more by Apple, now that they lost their only "advantage"... Price.
 
i thikn this is a good time for koreans to bring some innovation to the market.

koreans are always taking what's out there and just making it cheaper, which isn't necessarily bad.

*proud to be a twinkie*
 
Samsung actually has some really decent looking Mp3 players.

I would've hit the YP-T7Z like no other if it had 2GB instead of 1GB flash.
 
I think many of you are missing the point. Why is the nano so appealing? It's so small yet holds so much. It owes both those to the solid state memory Samsung provided. That's why people are buying them. How can anyone compete, pricewise, if Apple is getting them for so cheap?
 
Originally posted by: sygyzy
I think many of you are missing the point. Why is the nano so appealing? It's so small yet holds so much. It owes both those to the solid state memory Samsung provided. That's why people are buying them. How can anyone compete, pricewise, if Apple is getting them for so cheap?
Click to expand...
From earlier articles, Apple made a huge buying commitment to get its discount, agreeing to buy something like 50%(?) of Samsung's entire output. A big risk if the nano flops.

It's just like Dell pays less for intel CPU than everyone else because of their volume.
 
there was an article out that says apple enjoys about %50 profit margin before distrubution/marketing costs. So these companies dont have as much to worry about as long as apple keeps price raping its customers. but i do think the nano is cool as hell, and the only apple product worth its hype.
 
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