The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Analyst: Apple Insulated from NAND Flash Price Increases

Analyst: Apple Insulated from NAND Flash Price Increases

by , 8:45 AM EDT, July 12th, 2007

NAND Flash component pricing seems to have stabilized recently, which means companies can't count on dropping prices to help keep production costs down. Apple, however, is fairly well insulated from the change thanks to its practice of signing multi-quarter contracts for the memory used in the iPod nano, iPod shuffle, and iPhone, according to Piper Jaffray analyst Gene Munster.

"The vast majority of Apple's NAND flash buying is through multi-quarter contracts and is not impacted by changes in spot pricing," he said. "Apple has likely locked into contract pricing on NAND flash with Samsung for the next several quarters and, therefore, would be insulated from the recent changes."

Apple's deals with memory manufacturers also means that the company is more likely to be able to maintain a supply for product manufacturing -- something that some of its competitors may not be able to manage heading into the holiday buying season. Although Apple has been able to keep iPhones in only about half its stores, it is able to maintain a steady supply, and thanks to its buying practices will be in a better position to try to maintain that supply through the end of the year.

Looking forward, Mr. Munster expects that Apple will be releasing new iPod models that, like the iPhone, run OS X and include a touch screen interface. Mr. Munster commented "While Apple has been criticized for diversifying its product lineup, we believe Apple is focusing its offerings on the OS X software, which is used in Macs, Apple TVs, iPhones, and soon, iPods."

Mr. Munster is maintaining his "Outperform" rating and US$160 target price for Apple's stock. Apple is currently trading in the pre-market at $133.15, up 0.76 (0.57%).


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

  


Warning: include(/usr/local/etc/httpd/sites/macobserver.com/htdocs/forums/extension.inc) [function.include]: failed to open stream: No such file or directory in /var/www/bbm/macobserver.com/ee2/www/htdocs/comments/comments.php on line 108

Warning: include() [function.include]: Failed opening '/usr/local/etc/httpd/sites/macobserver.com/htdocs/forums/extension.inc' for inclusion (include_path='.:/usr/share/php5:/usr/share/php') in /var/www/bbm/macobserver.com/ee2/www/htdocs/comments/comments.php on line 108

Warning: include(/usr/local/etc/httpd/sites/macobserver.com/htdocs/forums/common.) [function.include]: failed to open stream: No such file or directory in /var/www/bbm/macobserver.com/ee2/www/htdocs/comments/comments.php on line 110

Warning: include() [function.include]: Failed opening '/usr/local/etc/httpd/sites/macobserver.com/htdocs/forums/common.' for inclusion (include_path='.:/usr/share/php5:/usr/share/php') in /var/www/bbm/macobserver.com/ee2/www/htdocs/comments/comments.php on line 110

Warning: include(/usr/local/etc/httpd/sites/macobserver.com/htdocs/forums/includes/bbcode.) [function.include]: failed to open stream: No such file or directory in /var/www/bbm/macobserver.com/ee2/www/htdocs/comments/comments.php on line 112

Warning: include() [function.include]: Failed opening '/usr/local/etc/httpd/sites/macobserver.com/htdocs/forums/includes/bbcode.' for inclusion (include_path='.:/usr/share/php5:/usr/share/php') in /var/www/bbm/macobserver.com/ee2/www/htdocs/comments/comments.php on line 112

Fatal error: Call to a member function sql_query() on a non-object in /var/www/bbm/macobserver.com/ee2/www/htdocs/comments/comments.php on line 532

Recent Headlines - Updated May 18th

Sat, 10:30 AM
How-To - How to Assign Custom Icons to Desktop Files & Folders in OS X
Fri, 8:10 PM
Free on iTunes - 3 Free iOS Apps We Hope You Never Need
7:52 PM
The Back Page - Apple’s ‘iRadio’ Streaming Excites Labels, Sony Hung on Skipping
3:50 PM
Particle Debris - How the War Between Apple & Google Will be Won
3:29 PM
News - Pentagon Approves iPhone & iPad for Military Use
1:10 PM
TMO Quick Tip - Apple TV: Hiding Unused Icons from the Main Screen
10:40 AM
Sci-Fi Airshow
9:17 AM
News - CW Signs Content Deal for Apple TV
8:31 AM
TMO Quick Tip - iTunes 11.0.3: New MiniPlayer Features
Thu, 5:25 PM
Analysis - Apple CEO Tim Cook Will Propose Corporate Tax Overhaul, Report
4:07 PM
myPhoneDesktop Allows You to Send Data from Mac/PC to iPhone
3:03 PM
iLuv Ships ‘Aud 5’ Lightning Speaker Dock for iPhone 5

The Mac Observer Reader Specials

  • Support TMO, Buy from Amazon, MacMall and The Apple Store

  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!