Samsung loses $10B market value due to Apple order rumor
Samsung’s shares dipped more than 6 percent yesterday, erasing $10 billion from the manufacturer’s market value, due to a rumor that claimed Apple ordered large amounts of chips with rebounding Japanese chipmaker Elpida.
According to Reuters, Taiwan tech website DigiTimes reported that the Cupertino, Calif.-based Company requested huge orders for dynamic random access memory chips with Elpida’s Hiroshima, Japan plant. Unnamed industry sources said the order fastened about 50 percent of the factory’s total chip production.
Samsung is the world’s foremost DRAM manufacturer, but its shares subsequently fell 6.2-percent to around $1,100 USD after the piping hot rumor circulated the blogosphere. The abrupt plunge is the stock’s 9-week low and sharpest daily fall in almost four years. SK Hynix is the second-largest memory chipmaker after Samsung, and its shares closed down 9 percent, which is a 20-week low and steepest slump in nine months.
Two things to note here:
1. Digitimes is about 20% right at best on its calls so their reporting is hardly a done deal
2. Anyone who follows Apple knows that a). they never only have one supplier – they choose multiple suppliers and b). they are shrewd negotiators and probably bought the RAM for just above cost which won’t yield much profit for Elipida.
Read the full story at 9to5Google.