Scarcity of 1 GB chips for MP3s in the Christmas season

Creative (Singapore) has criticized that the cooperation agreement between Apple and a flash memory chip supplier has put pressure on the entire market for music devices.

"One of the fundamental challenges we will face when dealing with MP3 players is the lack of a 1 GB flash memory chip," said Craig McHugh, Creative Company director. "The industry's demand for large-capacity memory has recently outstripped supply and this will affect the popularity of music devices during the biggest shopping season. According to experts, this scarcity, basically a consequence of a separate contract, ensuring that Apple fully meets the needs of Christmas. "

McHugh did not name Samsung, but Apple recently announced a deal to sign a Korean electronics company with flash sources for music devices, especially the recently released iPod Nano, replacing the iPod Mini. built on the hard drive.

According to Creative CEO Sim Wong Hoo, a few Chinese manufacturing companies have withdrawn from the market in the past few months due to the pressure Apple created. "Even if Creative were at a loss, many other companies would not be able to really cope with this war. However, I think the deal will not last long," Hoo said.

The deal was also criticized by South Korean MP3 producers, some of whom doubted that Samsung was providing chips at low prices. The chairman of the country's Trade Commission also revealed an inspection of the possible deal.

TN