Apple holding back on flash memory purchases?

The most recent example that Apple might be worried about the economy? They haven't made a major flash order yet this year, according to Digitimes.

As if things weren't bad enough for flash memory companies this year, they're now even more concerned since Apple has yet to place a major order in 2008, according to a report out of Taiwan.

Digitimes hasn't always been the most reliable source, but they have gotten enough things right lately to take notice, and their report Tuesday suggesting that Apple's flash memory orders have fallen off the face of the Earth jives with other information we've seen this year. According to Digitimes' sources in the Taiwanese flash memory industry, Apple has yet to place a big order of flash memory during this calendar year after spending about $1.3 billion in 2007 on flash.

Apple reportedly has yet to place a major order this year for flash memory used in iPods and the iPhone. CNET Networks

Last month, iSuppli reported that Apple was cutting its flash memory orders. And at a meeting last week for financial analysts, Intel CEO Paul Otellini said that flash memory prices had fallen 53 percent from the fourth quarter to the first as demand slackened from Intel's biggest flash customer, believed to be Apple.

Even after all this time it doesn't seem that any other MP3 player is cutting into the iPod juggernaut, suggesting that Apple's primary concern is the state of the economy, not a competitive threat. At last week's Apple investor meeting, Chief Financial Officer Peter Oppenhemier said that "these are concerning times we're in."

Digitimes suggests that the rumored launch of an Apple Mobile-Internet Device using Intel's Atom chip might provide a boost for the flash memory market, but I'm still skeptical that kind of device--if it actually exists--would be that much of a catalyst.

If anything, I would think a compelling MID from Apple would take business away from either the iPhone or the iPod Touch, leaving Apple with the same amount of flash memory demand. Intel isn't expected to ship the Atom processor until the second quarter.

About the author

    Tom Krazit writes about the ever-expanding world of Google, as the most prominent company on the Internet defends its search juggernaut while expanding into nearly anything it thinks possible. He has previously written about Apple, the traditional PC industry, and chip companies. E-mail Tom.

     

    Join the discussion

    Conversation powered by Livefyre

    Don't Miss
    Hot Products
    Trending on CNET

    HOT ON CNET

    Looking for an affordable tablet?

    CNET rounds up high-quality tablets that won't break your wallet.