Apple to buy Israeli flash memory manufacturer?

According to a report over at TechCrunch, Apple is preparing to purchase Israeli flash memory manufacturer Anobit for $400 million to $500 million.

According to a report over at TechCrunch (drawing on Calcalist, a Hebrew publication), Apple is preparing to purchase Israeli flash memory manufacturer Anobit for $400 million to $500 million.

Apple

The acquisition would be CEO Tim Cook's first as the guy in charge at Apple, though he has been through the process before. Apple recently purchased P.A. Semi in order to produce the mobile processors (the A4 and A5) that now appear in iPhones and iPads.

Purchasing Anobit seems like a prudent move on Apple's part. By controlling its own flash storage manufacturing, Apple should be able to cut costs and forward those savings on to customers. Creating cheaper flash memory pushes down the prices of any devices that use that component, including iPhones, iPads, iPod Touches, and MacBook Airs.

According to TechCrunch, Calcalist claims that Anobit already supplies Apple with flash memory components that use a proprietary Memory Signal Processing (MSP) technology, which is based on algorithms that compensate for the physical limitations of NAND flash.

Apple has continually been a major player in the flash memory market worldwide, often buying any available flash components and thus putting its competition in a predicament when trying to keep up. By buying one of the premier flash component manufacturers, Apple is no doubt betting the future lies with flash storage.

Could Apple's acquisition of Anobit spell tough times for competitors looking to keep up with Apple's mobile strategy? Let me know your thoughts in the comments!

 

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