Report By DigiTimes Makes Samsung Lose $10 Billion Market Value

You read the title right. Analysis from a prominent source, be it true or entirely false, has deep implications on the world of finance. So is the case too, in the tech world. While DigiTimes is often known for claiming things which eventually turn out to be true, this time a report from the publication has cost Samsung a whopping $10 billion in market value.

In its report, DigiTimes claimed that Apple had decided to go with mobile DRAM chips from Elpida. While formerly Apple uses chips from Samsung, Elpida is a direct rival of Samsung in chip-making. Naturally, this made it look like that Apple was taking a huge chunk of Samsung’s major source of revenue away from it and was rather going to invest in Elpida.

As a result, Samsung’s shared swooped down by 6 percent, significantly damaging the company’s net market worth which dropped by $10 billion consequently. While we are not sure how accurate is the DigiTimes report, it may contain some trace of truth.

After all, Apple has decided to use Elpida chips in its latest flagship tablet, the new iPad. This may be Apple’s strategy to increase its number of suppliers so that it does not get to rely too much on its main chip suppliers, namely Samsung and Hynix.

Interestingly, Elpida itself has been right on the verge of bankruptcy a while ago and now, Micron Technology is trying to acquire the company. If  it is indeed able to acquire Elpida, it will be becoming a direct rival to Samsung and a main supplier to Apple.

Source: Reuters

Courtesy: CNET


Salman Latif is a software engineer with a specific interest in social media, big data and real-world solutions using the two.Other than that, he is a bit of a gypsy. He also writes in his own blog. You can find him on Google+ and Twitter .

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