Apple's decision to offer 256GB iPhone models this year leads to a tight market for flash memory

Apple's decision to offer 256GB iPhone models this year leads to a tight market for flash memory
Demand for NAND flash memory chips is said to be so strong that suppliers are able to raise prices. Vendors are saying that supply is being swamped by demand. Price hikes have been made by NAND flash producers such as Samsung and SK Hynix. Distributors are buying up as much inventory as they can. Industry sources see prices rising until the fourth quarter of 2016, which starts October 1st.

The industry is heavily dependent on Apple's purchasing of the component in determining whether supply and demand of NAND flash chips are in balance, or favoring one side over the other. For example, Apple's purchase of these chips for use in the Apple iPhone 6s and Apple iPhone 6s Plus accounted for 15% of NAND supply in 2015. And this year, demand is being led by Apple's decision to offer 256GB of native memory on the Apple iPhone 7 and Apple iPhone 7 Plus.

With Apple purchasing as much memory as it can find, Android manufacturers are holding off on hiking the amount of flash memory available on new models. Even if some Android manufacturers can afford to pay the higher prices to obtain higher capacity NAND flash chips, Apple's position in the market means that the chips might not be available on a steady basis.

source: Digitimes

Related phones

iPhone 7
  • Display 4.7" 750 x 1334 pixels
  • Camera 12 MP / 7 MP front
  • Processor Apple A10 Fusion, Quad-core, 2340 MHz
  • Storage 256 GB
  • Battery 1960 mAh(14h 3G talk time)
iPhone 7 Plus
  • Display 5.5" 1080 x 1920 pixels
  • Camera 12 MP / 7 MP front
  • Processor Apple A10 Fusion, Quad-core, 2340 MHz
  • Storage 256 GB
  • Battery 2900 mAh(21h 3G talk time)

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105 Comments

1. kiko007

Posts: 7520; Member since: Feb 17, 2016

256 GB IPhone 7 Plus in Space Black........come to Daddy :D.

15. Mxyzptlk unregistered

Ikr? My body is ready.

17. willard12 unregistered

I have purchased the trademark to that phrase. And no, prior art doesn't matter. See you in court.

54. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Apple should just make an app to appoint itself as the sole beneficiary of their fanboy estate upon their passing. I am sure there would be fans that would click it.

16. sarcastic_nerd unregistered

First you need to say goodbye to 1200$.

21. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

Some of us have $1200 laying around, and some of us have to ask mommy. The ones that mention $1200 in a problematic way, have to ask mommy.

24. kiko007

Posts: 7520; Member since: Feb 17, 2016

IKR? These dudes act like everybody out here struggling for funds. I make 450,000 dollars a year......this ain't doing nothin' to my wallet.

25. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

Hell, I don't make half that, and could buy one full price without blinking, or just charge it. I myself, will just put on AT&T Next, and pay it off whenever I feel like it. You ready for some 7 Plus heaven?

27. kiko007

Posts: 7520; Member since: Feb 17, 2016

Damn straight!

30. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

Right on.

34. Unordinary unregistered

I make a quarter of that lmao.. But still. Exactly! 1k isnt anything when I dont eat out every night and cook at home, compared to people who eat out all the time or spend money on other things. All these circle jerkers on here act like spending money on an iPhone is bad. "Oh but its over priced for what it is". Apple has been making one of the best smartphones for the past 10 years, regardless of what's written on paper stats. If you disagree with this statement, then you answered the argument - its not worth it for YOU. 1000 bucks for someone else though, totally worth it. Keep circle jerking, haters.

48. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

Right on! If you don't like/want it, don't buy it. You're also right, the iPhone is where it is in the market for a reason, it's a damn good device. Although I'm skipping it this year, part of the reason is that my 6S Plus is more than good enough to get me to the 2017 redesign. Having iOS 10 on it, and having the Note 7 will keep me going, till the iPhone 8, and the Note 8.

84. sarcastic_nerd unregistered

I am not going to disclose my income, but I can buy 5-6 of them every month without much strain on my finances. Still, I won't because of moral reasons. Just because you earn a lot doesn't justify wasting them. And just because someone says something costs a lot doesn't mean he is financially weak. Now go back to making your 450k$ of monopoly money. Because the only dudes that disclose their income online are either idiots or 12 year olds who just like to do fake bragging.

85. kiko007

Posts: 7520; Member since: Feb 17, 2016

Translation: Hater logic "Moral reasons" Sounds serious......who'd Apple murder? Was it Joey Turner? (You see how idiotic you sound right? Moral reasons....lol) BTW.....I'm sure if you understood context $450K wouldn't be bragging to you. Hell, my boss chumps me when we go out to eat :D.

86. sarcastic_nerd unregistered

Moral reasons for not spending more than 600$ on a phone. I'm sorry but I don't think a phone is worth that much. Spending more on a phone just gives marginal improvements. I will get almost nothing more from a note 7 or iPhone 6s plus over a oneplus 3 in my use case scenario, despite paying almost double the amount of money. If you wanted to convey just the context, you wouldn't have mentioned the absolute amount of money you make. I'm not an Apple hater. In fact, I own an iPad air 2 and 2015 rMBP 15". It's just that I think iPhones are a waste of money and you can get better experience for lesser price. I pay more only if I get more on a practical use case scenarios. With iPad I get proper tablet apps which android just sucks at. With macbook I get mac OS which can execute bash commands( now windows can do it too with 10, so will switch). I use windows desktop to play games and multimedia. You get the point. It's my personal opinion that I dislike iPhones and won't pay more than 400$ for a grandma's phone. You are free to agree or disagree with it without bringing earning money into the equation.

88. kiko007

Posts: 7520; Member since: Feb 17, 2016

Why didn't you just that then? No need for pot shots....I can't fault you for your preferences after all. Thought about the OP3 myself, but since ZTE unlocked the Axon 7 BL, I'll get that with the 7 Plus I guess. I'll wait til the Nexus comes out to make the decision official between the two (just to be safe). Honestly though, I know people say iPhones are boring, but isn't that kind of the point? Android is the party girl......iOS is the Christian Academy grad....... always playin' it safe :D.

46. L0n3n1nja

Posts: 1581; Member since: Jul 12, 2016

That is alot of money, you do realize over 40% of Americans make under $15/hr or less than $32,000 a year. I could personally afford it now, but last year or prior to that I couldn't, and my mother sure as hell can't. And even now, I'd never spend that on a phone, far better ways to spend money. Spending hundreds extra for storage when a 32gb phone is still plenty would be silly.

49. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

It's all about choice, don't want it, don't buy it.

87. sarcastic_nerd unregistered

Thank you, finally someone understands. And trust me, he doesn't earn that much. Else he wouldn't be trolling on the internet.

69. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

But the ones who need to ask mommy, don't have to wait for a paycheck to buy a phone. :-)

73. kiko007

Posts: 7520; Member since: Feb 17, 2016

That made zero sense bruh.......

75. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Because it wasn't for you. The person I repli3d too knows what it means.

92. ebilcake

Posts: 1231; Member since: Jul 16, 2016

You post some really stupid comments, you know that right?

82. sarcastic_nerd unregistered

Those who act like they have a lot of money act

40. nctx77

Posts: 2540; Member since: Sep 03, 2013

Take my money!

71. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

No actually I dont. I'm getting the Note 7 and for $850 and I'll be getting 256GB for free. Plus the on board 64. That's 320GB and a phone with more features for less money than a raggedy iPhone. Apple again sniffling competition by buying up everything so no one else can. Lol. As much money Apple makes, they won't even in establishing in a factory to make their own memory chips or CPU. Since the 128GB iPhone was 949. I expect 256GB to cost about $1149.99....lol

20. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

It's gonna be a hot item.

39. nctx77

Posts: 2540; Member since: Sep 03, 2013

I'm the Daddy lol!

2. Nathan_ingx

Posts: 4769; Member since: Mar 07, 2012

Wow! And when the final product is out, it will land here for $1500. Awesomeness at a high speed level.

3. AlikMalix unregistered

If it's not worth the price people would not buy it.

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