Report on memory prices: Apple had to accept the first offer with high increases “out of desperation” | News

Storage prices have been skyrocketing for the past few months. What initially only affected special high-performance storage devices is increasingly trickling down to more common brands. As already discussed in several reports: A rapid expansion of production is almost impossible, and three major suppliers share the market and benefit greatly from the said development. According to one report, the situation is now so tense that even Apple can no longer rely on its own ability to set prices for suppliers. While negotiations normally take place down to the thousandth of a cent, the first new offer that comes along is said to have been accepted.

Samsung suggests doubling – gets it
According to the information, Samsung approached Apple to agree on new purchase prices. According to this, Samsung suggested a doubling, but internally expected an increase of around 60 percent. But things turned out completely differently, because Apple accepted the offer directly and without further negotiations. The reason for this is that there is a certain desperation at Apple as to how they can ensure sufficient supplies.

The company didn’t want to get into tougher arguments, knowing full well that there were hardly any alternatives on the market. It is possible that forecasts also say that even with a surcharge of 100% you would still be in a pretty good position in the long term, as long as you didn’t risk any bottlenecks.

Industry-wide problem
Apple is certainly not alone with this problem. Some industry insiders even describe the situation as saying that even with the highest bids you can hardly get the desired quotas – the market is so empty. Hardly anyone has a particularly strong negotiating position anymore, because if provider A doesn’t accept, manufacturer B is happy. Apple’s usually strong argument that it buys enormous quantities, which is why particularly low prices could be agreed, is largely invalid.