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Korean FTC May Investigate Apple/Samsung

Posted by Zonk on from the should-have-thought-that-through dept.

freaktheclown writes "Samsung may have sold Apple flash memory chips at below-market prices, possibly violating the country's competition laws. From the article: 'According to a report by Yonhap News, Korean Fair Trade Commission (FTC) Chairman Kang Chul-kyu said that his agency could look into allegations that Samsung sold the memory chips to Apple at below-market rates. Apple reportedly grabbed a significant share of Samsung's flash capacity in order to introduce its new iPod Nano. Analysts also speculate the computer maker got a significant discount from Samsung in order to hit the Nano's $199 and $249 prices.'" Adds a new layer to a previous story, eh?

2 of 148 comments (clear)

  1. How is this Apple's foul? by JoeGrind · · Score: 4, Interesting

    Can someone explain to me how this is reflects badly upon Apple? I'm asking sincerely. When I go shopping I look to find the cheapest price. Seems as if Apple was just doing the same. If they can negotiate a better rate from Samsung, I'd consider it foolish not to. It more sounds as if Samsung might have broken some Korean law, no?

  2. Korean christmas, liquid lunch and options. by tabbser · · Score: 3, Interesting

    Perhaps the issue at heart here is not that Apple bought chips at below market levels (Yes, I've seen the Toshiba posts), but perhaps that some Korean company has complained (lobbied the government) that they now are having to buy chips at an increased rate and the christmas goodies are not in jeopardy.

    This seems more likely to me.
    I'm sure apple has bought futures on flash and can ride out any price differential, just like the smart airline companies (should) have done with jet fuel (not American, United, Southwest etc).

    I'd be surprised if apple does not have people that work global analysis of such purchases and buy up options.
    I know I would if I were buying up 40% stock of flash from some companies.

    If it were me (and I'm not a finance person) I'd buy up options on more than I needed and sell those options at many times the face value once the world realized (as we approach christmas) that there is a shortage of flash because "apple" is buying them all. I bet Apple is not only making $199 on your ipod nano purchase, but also a few extra bucks per nano on the futures market just because your ipod is sucking up flash.

    I wish I'd taken finance at school instead of dicking around with a liquid lunch and an irrational particle accelerator.