Apple is reported to be sitting on a stockpile of flash memory and has not yet ordered large quantities of the component, hammering the spot price for the solid state storage media.
DigiTimes this morning claims Apple hasn't yet made orders for flash memory of the scale of those orders it made last year. However, the report notes the company made its largest orders within the last few months of 2007.
"In contrast to the huge procurement of flash the company made in 2007, Apple seems to not have started making big procurements in 2008. While memory makers are worrying about the consumption level of Apple, mainstream flash prices are already priced below cost, according to sources at Taiwan memory makers," say the report.
Apple procured about $1.2-1.3 billion worth of flash in 2007, with Intel, Hynix Semiconductor, Micron Technology and Samsung Electronics main suppliers, the report informs.
The report adds that at current prices, 8GB and 16GB modules are being sold under cost.