Apple’s mobile devices tend to have much higher profit margins than it’s competition, because of their strong reputation in terms of build and component quality. A majour reason of this is because of its unique approach to using NAND flash memory.
Apple is the largest buyer of flash memory in the world, accounting for around 23 percent of total global consumption, according to the Bernstein’s estimates. It uses that purchasing power to secure low prices for NAND components, which it then uses to increase its profit margin on its tiered iPhone and iPad product lines, a strategy other hardware makers haven’t yet been able to mirror with quite as much success.
Ironically, Apple earns nearly twice as much from reselling NAND than all the NAND suppliers combined, with NAND resale responsible for 20% of Apple’s total operating profits last quarter, at an annual run-rate of $10B+. Apple also makes money on NAND by selling it as part of its base configurations of its products. If we assume that Apple accrues the same profitability on NAND in base- configuration products as the overall margin on the products themselves, this suggests that Apple earns an additional $400M+ in operating profits attributable to NAND in base-configuration products.
Owning Anobit’s tech would help Apple by providing it with access to proprietary digital signal processing tech that it could use to further its competitive advantage in the area of NAND flash
Porter Minnerly
I don’t drop many responses, however I looked at some of the responses on NAND Helps Apple In Higher Profits – Technut. I actually do have a few questions for you if you do not mind. Is it just me or do a few of these comments come across like they are left by brain dead individuals?
And, if you are writing at other social sites, I would like to keep up with you. Could you post a list of the complete urls of all your social networking sites like your twitter feed, Facebook page or linkedin profile?
Kamil
iPads are terrible for riedang, strains my eyes, I read a good bit so I had to also get a Kindle. iPads are good though for just surfing the web, email, etc not good for any serious extended riedang like books, newspapers, etc.
Byrn
My Android phone is prttey amazing. Chose it over an iPhone, despite being a mac owner. Still prefer it to my kids iPhones. And Android is outselling iPhone. Clearly, someone else can do it. Andoid on a tablet might just be the trick.
Khushbu
If you want the iPad on launch day, then you are going to need to get there AT LEAST 3 hours brfeoe the stores opens. If you want to be at the front of the line, you will need to be there 5-7 hours brfeoe doors open.