Skip to main content

Market Overview

Using Apple As An Indicator For The Memory Market

Share:
Using Apple As An Indicator For The Memory Market

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."

tipranks.png

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

DateFirmActionFromTo
Feb 2021RBC CapitalAssumesOutperform
Jan 2021DA DavidsonMaintainsBuy
Jan 2021Deutsche BankMaintainsBuy

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

 

Related Articles (AAPL)

View Comments and Join the Discussion!

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

Latest Ratings

StockFirmActionPT
FSRMorgan StanleyMaintains40.0
NATJefferiesMaintains2.8
MEDDA DavidsonMaintains302.0
VICRBWS FinancialMaintains120.0
PSXMizuhoMaintains96.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com