Apple Accused of Flash Memory Manipulation

[hancoma]

There are NO major companies that manufacture, or assemble their own products. Believe me, I have worked in the industry for 15 years.
Example, Cisco pays a company to build the products, test them according to their processes, program them for the end user, and delivers them.
Cisco gets the check, the 3rd party vendor gets marginal profits.

We made boards for a company, (that I will not name), the total cost after building, testing, etc was $18k, the company sold these boards for $100,000!

The 3rd party vendors all have a krappy contract, and it is not as simple as switching to another company to purchase the parts from. All of them have the same profit margins, in order to stay competitive with other vendors.

3rd party vendors build for more than one company and may have over 200,000 parts in inventory.

And although the prices cited in this article have gone down, it is not significant to us, but only to them and their 2% profit margin.
Apple, nor any other company is going to pass the savings to us, the savings are passed to them. The high prices for the overall product are for the years of development, testing, and cost.

[steve-z17]

learn to read, the article state that source is not from Samsung or Hynix. So it could be from somewhere else. It might be whining if it's from Samsung & Hynix but from others point of view, how come it'd be whining ? can you not point out others absurdity ? can you not correct others fault ? would you stay in your room quietly when some one taking all your stuff in living room ?

You don't see things until you do something. You will never accomplish things if you stand still.

you have bad attitude by the way

How bout you stop being a jerk, I didn't ask you to answer my questions in a rude way, I just wanted to know. I automatically have a bad attitude because I ask questions? I'm asking them to understand, to gain knowledge about the subject, and I don't need you acting like a big shot who can try and put ppl down because they might not know as much as you on the matter.

Thank you hancoma. I appreciate your info, that's very helpful!

[jOnGarrett]

Kudos to Apple. They are helping bring the prices down on already expensive product.

well by that logic AT&T should over-order iPhones to bring down the price on an already expensive product.

[rhekt]

Also, the vendors cannot simply 'change' the price. There are corporate contracts for pricing models on quantities.
If the vendor requests a larger quantity, the price goes down, and if the vendor bails out due to changing demand...there are no repercussions.
They are left with a huge inventory of parts, and now have to sell them, as inventory turns is a metric of profitability. Thus the price goes down.

No, they cannot simply change the contract, this is done maybe every 6 months as part of pricing model and assy, typically parts cost and replenishment is a set industry standard across all OEM's and not negotiated.
If these prices are changed, a new vendor is sought....and other vendors will give them the prices they want simply for the business.

very good to know not all buisness practice is the same. thank you.

[thevmax]

NO refunds, 80% restocking fee. problem solved.

I agree with jOnGarrett.......