Samsung Loses $10 Billion of its Value Over a Rumor That Apple Will Reduce its Orders

[dgstorm]

Just today, Samsung lost 6% of its total market stock valuation because a rumor over at DigiTimes suggests that Apple will cut its orders for chips and switch to using Japanese silicon maker Elpida. This amounted to a $10 Billion dollar dip in stock price, which is sure to make some investors unhappy. Here's a quote with some additional details,

The report stated that Apple orderd DRAM chips from Elpida's Hiroshima plant in Japan, occupying nearly half the total chip production capacity. And despite it not pointing out any specific sources, the rumor has hit Samsung stock hard.

The Korean company is currently the world’s biggest DRAM maker, but if the rumor proves true Apple might be moving to change that. Recently, US chip maker Micron was said to be looking into merging with Elpida, and a joint company could pose a real threat to Samsung.

"It looks like Apple doesn't want to see Samsung and hynix dominate the chip market. Apple wants to maintain its bargaining power by keeping Elpida running," an analyst at LIG Investment & Securities, Choi Do-yeon, said.

It's amazing how one small rumor can cause such a massive "butterfly effect." We will let you know if this rumor turns out to be true. It looks like there may be some big changes happening in the semi-conductor industry.

Source: PhoneArena

 

[MA83]

So, is it 10 million or billion?

 

[dgstorm]

Sorry. Typo. Story fixed. Thanks for the catch!