Market Overview

Using Apple As An Indicator For The Memory Market

Using Apple As An Indicator For The Memory Market
Related AAPL
Wells Fargo: Weak Guidance Reignites Fossil Group Bear Case
What Are The Trends In 13Fs Showing Us?
How To Get High Growth With Half The Risk (Seeking Alpha)

Apple Inc. (NASDAQ: AAPL) is reportedly looking to prevent Western Digital Corp (NASDAQ: WDC) from acquiring Toshiba Corp's chip business by threatening not to buy its products, Reuters reported last week.

Apple currently uses Toshiba's NAND flash memory chips for its iPhone and is afraid of losing pricing power if Western Digital were to assume control of the chips business. Apple is also Toshiba's biggest customer and shutting out Western Digital "appears to be no small threat," BTIG's Edward Parker commented in a research report. In addition, Apple is "throwing its weight around" in such a notable way that suggests it sees higher sustained memory pricing as a real possibility.

One of the factors that makes Apple so profitable is its ability to monetize storage better than anyone else, the analyst continued. As such, Apple has lots of reason to care about the trajectory of memory pricing and the Cupertino-based company is "exerting its influence."


Nevertheless, even if Apple were to end up paying a higher price for memory products, the company's margins are "high enough that they'll be fine," Parker argued.

Bottom line, storage and memory technologies is a real "gravy train" for Apple and the company doesn't want it to end. Thankfully though, all members of Apple's supply chain "both revers and fears" the company.

Related Links:

Barron's Picks And Pans: Nike, Altaba, Viacom And More

Outlook For Apple's Main Event? AR, 3D And A Swankier Siri Tying It Tightly Together

Latest Ratings for AAPL

Jan 2019Bank of AmericaReiteratesNeutralNeutral
Jan 2019CitigroupReiteratesBuyBuy
Jan 2019Morgan StanleyMaintainsOverweightOverweight

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: Apple Apple Supply Chain btig Edward ParkerAnalyst Color Top Stories Analyst Ratings Tech Best of Benzinga


Related Articles (AAPL + WDC)

View Comments and Join the Discussion!

Latest Ratings

CBBMorgan StanleyUpgrades10.0
GDCredit SuisseDowngrades184.0
GEOJP MorganDowngrades26.0
TRUERBC CapitalDowngrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Don't Forget This Europe ETF

Mid-Morning Market Update: Markets Open Higher; Teva Pharmaceutical Names Kaare Schultz As CEO