Apple threatens to stop buying Western Digital parts if it continues with Toshiba deal

Apple threatens to stop buying Western Digital parts if it continues with Toshiba deal
Back on the last day of August, we told you that Apple was part of a group seeking to buy Toshiba's memory chip business. But it appears that a rival consortium, led by Western Digital, could be signing a deal with Toshiba as soon as Wednesday. That group is offering $17-18 billion USD. Apple, though, is concerned that a Western Digital purchase of Toshiba's chip business would eliminate a rival flash memory chip producer that it could use as a stalking horse in order to get better pricing for the component that Apple uses on the iPhone.

As a result, Apple is threatening to stop buying Western Digital products unless the latter backs away from the purchase of Toshiba's flash memory chip business. Apple also said that if Western Digital drops down to a minority investor in a bid for Toshiba's chip business, the tech titan will help finance the deal by throwing $460 million into the pot.

Toshiba has a number of separate deals to consider. Besides the one including Western Digital and U.S. investment banker KKR, there is a bid from U.S. investment firm Bain and its partners, and one from contract manufacturer Foxconn. The latter two deals include Apple as a partner.

Toshiba needs to have any deal close before its fiscal year ends in March. Otherwise, it faces having to report a negative net worth and that could lead to the de-listing of the company from the Tokyo Stock Exchange.

source: CNBC

FEATURED VIDEO

112 Comments

1. omnitech

Posts: 1131; Member since: Sep 28, 2016

lol Apple and their greed, threatening people to keep their ridiculously high profit margins.

70. diggie32

Posts: 388; Member since: Apr 03, 2016

How dare they act like any other company!

78. tedkord

Posts: 17356; Member since: Jun 17, 2009

Please cite other companies threatening not to buy products from a company if they buy another company up that they were interested in buying.

82. cheetah2k

Posts: 2256; Member since: Jan 16, 2011

Yeah, it sums up just how much Apple continues to breach Anti-competition rules, and gets away with it.. Making threats like this just shows how much of a Bully Apple really is too. I'm actually surprised Trump hasn't blown the whistle on Apple's crap yet.. If I was WD, I'd continue with its purchase. After all, Apple will always have Samsung to compete with on pricing...

2. MrShazam

Posts: 987; Member since: Jun 22, 2017

If you too cheap to outbid them, threaten them.

3. kiko007

Posts: 7493; Member since: Feb 17, 2016

Armchair business strategists above... why am I not surprised whose names I see?

7. omnitech

Posts: 1131; Member since: Sep 28, 2016

LOL Like I said many times, I probably understand how businesses work much better than you do and nowhere is threatening other companies into backing off a respected move. It's probably way worse than insider trading will ever be the government should give them a slap on the wrist imo. Of course they wont since Apple IS the American economy.

9. kiko007

Posts: 7493; Member since: Feb 17, 2016

"LOL Like I said many times, I probably understand how businesses work much better than you do and nowhere is threatening other companies into backing off a respected move." If you know anything about Corporate ops, you'd know people at the top give zero f**ks about "respected moves". Is it legal to do this? Damn straight? Is it ethical? Probably not... but they couldn't care less. This isn't some turf war between rival gangs, this is a company using leverage to get what they want. "It's probably way worse than insider trading will ever be the government should give them a slap on the wrist imo." What the f**k are you talking? Do you know what insider trading actually is? Do you know who has oversight into matters like that (note: it ain't "the government")? "Of course they wont since Apple IS the American economy." Lol... not even close! Apple's contribution to the American GDP is less than a percentile. Hell, in the state at which Apple is most present (California) their contribution is still under 10% of their GDP (California's GDP is the sixth highest in the world... as a f**king state). In contrast, Samsung accounts for almost a quarter of SK's GDP, which is why the Samsung Business Group has gotten away with so many "suspect" business dealings.

50. iushnt

Posts: 3105; Member since: Feb 06, 2013

Why is Apple always right for you? And ethics is something more important. Apple neither does business legally or ethically. But yeah Apple is always right and we should defend them every time if someone attacks them. What a blind fanboy.

18. AxelFoley unregistered

Western Digital is from Irvine, CA. Apple threatening another American company.

23. kiko007

Posts: 7493; Member since: Feb 17, 2016

That changes what exactly?

16. tedkord

Posts: 17356; Member since: Jun 17, 2009

Come on, you can't possibly defend this.

19. kiko007

Posts: 7493; Member since: Feb 17, 2016

I'm an Apple fan... defense is what I do.

36. tedkord

Posts: 17356; Member since: Jun 17, 2009

Are... Are you in the town of Christmas on the planet Trenzalore?

39. kiko007

Posts: 7493; Member since: Feb 17, 2016

Doc Who reference?

44. tedkord

Posts: 17356; Member since: Jun 17, 2009

Nice. Wasn't sure you'd get that.

51. iushnt

Posts: 3105; Member since: Feb 06, 2013

U clearly accepted u r a troll. This website is to talk about tech, not to potray blind fanboism pointlessly. You r now no different than numourous troll here.

56. MrShazam

Posts: 987; Member since: Jun 22, 2017

Hey, look on the bright side, at least he no longer makes a numbskull out of himself thinking he's fooling anyone into believing he's not a blind fanboy with double-standards.

76. tedkord

Posts: 17356; Member since: Jun 17, 2009

Or, he was being facetious.

4. cmdacos

Posts: 4201; Member since: Nov 01, 2016

If this is true, I don't see how anyone can justify this is right.

5. kiko007

Posts: 7493; Member since: Feb 17, 2016

Who has too? Do you justify haggling whenever it's convenient? Or are you just here because you saw Apple doing it so it must be bad?

8. omnitech

Posts: 1131; Member since: Sep 28, 2016

lol That's nothing like Haggling. You would be the first to attack corrupt government officials but it's the same as this, using power to bully people.

10. kiko007

Posts: 7493; Member since: Feb 17, 2016

Jesus Christ, how the hell have you made it past high school writing like that?

11. trojan_horse

Posts: 5868; Member since: May 06, 2016

"how the hell have you made it past high school writing like that?" Yeah... let's forget the obvious fact that not everyone who visits this site has English as their native language. When defeat occurs in an argument, deflection to bash someone's writing or grammar rather than to focus on addressing the topic at hand... Typical loser technique. SMH

12. kiko007

Posts: 7493; Member since: Feb 17, 2016

There WAS no argument. In order for there to BE an argument, the other party must have a concise viewpoint. NOTHING in that garble denotes ANY viewpoint other than "Apple bad, me no like". He has NO point of contention for me to argue against. How can I argue something with someone who doesn't know s**t? Besides, I don't know if you know this, but not having English as a native language is normal here. English isn't MY native language, but that doesn't stop me from doing my best to convey my thoughts properly. Even if you don't speak it fluently, that's no excuse when trying to counter an assessment. In fact, that's one of the caveats of engaging in a debate; concise speaking. So sell that "but not everyone speaks English" bs to someone who ISN'T an immigrant. I worked my ass off to learn this language, I'll be damned if I used that as an excuse as to why I can't get my point across.

15. trojan_horse

Posts: 5868; Member since: May 06, 2016

". English isn't MY native language, doesn't stop me from doing my best to convey my thoughts as best I can." I'm already aware of that. In a previous article you said you left Brazil at 13 years of age, that's probably a long time ago and probably means you've had plenty of time to learn English properly. What if Omnitech started learning English in September 2016 (the year which he registered on PA)? And thus he has NOT gotten as much time as you did to learn English properly? In this case, what's your excuse of bashing his writing? "So sell that "but not everyone speaks English" bs to someone who ISN'T an immigrant." So what? Are you saying that those who aren't immigrants in the US, that is, those who are natively in the US, must know proper English? What if a native US resident and didn't go to school due to lack of finance by his parents? That means the person can speak proper English (since he grew up there) but doesn't know how to write it properly due to lack of Education? You're sound in being kinda rude now and you're kinda discriminating those who didn't have the chance to go to school... literally. "There WAS no argument. In order for there to BE an argument, the other party must have a concise viewpoint." So, you say Omintech's comment had no substance, no viewpoint nor argument, yet you confronted his post anyways, which means your reply was an attempt to create an argument out of a comment which posed no argument in the first place (according to you)... What sense does that make? This is ridiculous.

17. kiko007

Posts: 7493; Member since: Feb 17, 2016

"I'm already aware of that. In a previous article you said you left Brazil at 13 years of age, that's probably a long time ago and probably means you've had plenty of time to learn English properly." I'm in my mid twenties, and I haven't been really in need of a lesson since maybe the latter stages of high school. As far as languages go, English is one of the more simplistic to learn because much of it is dialect agnostic. Anyways, my point wasn't that his English is bad so he should feel bad, it was that such an excuse CANNOT be a determining factor in whether or not his "argument" has merit. If the other party cannot understand the point of his post, then it isn't an concise viewpoint to begin with. "You're sound in being kinda rude now and you're kinda discriminating those who didn't have the chance to go to school... literally." Read his above reply regarding business knowledge. He claims to know more than I do there, despite not even fully comprehending how the interaction mentioned within the article is perfectly legal. Hell, he even tossed out the words "insider trading" without any sort of actual understanding of why that is a serious crime. That's the guy you're currently defending right now. Someone who knows nothing, pretending to know everything. "So, you say Omintech's comment had no substance, no viewpoint nor argument, yet you confronted his post anyways, which means your reply was an attempt to create an argument out of a comment which posed no argument in the first place (according to you)..." No. I replied to it because this is a forum, and replying to people is kinda the point. You're reading too much into me replying to trolls. I literally do that all the time. Not every post is a substantive counterargument, and in fact most arent. If he had said "haha Apple stooge" would my reply be seen as engaging in debate? Of course not... it would be troll intimidation.

27. izim1

Posts: 1599; Member since: Feb 04, 2013

I made it through high school without even writting a single word in english. I know, it's shocking that the entire world doesnt require perfection of the english language but in france we spoke french for whatever reason. Weird as that may be... anywho feel free to mock my grammar too if that's how you get your jollies, since i already know it isnt up to your perfect standards. Nothing more empowering than mocking peoples english grammar on the world wide web, is there?

29. kiko007

Posts: 7493; Member since: Feb 17, 2016

This is getting tiresome: I'm not mocking him SPECIFICALLY FOR HIS GRAMMAR. My grammar isn't perfect... nobody's is. However, at a certain point, you shouldn't be trying to counter someone else's PoV with gibberish regarding business tactics you know nothing about.

53. iushnt

Posts: 3105; Member since: Feb 06, 2013

Stop feeding the trolls.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.