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The irony lies in the fact Samsung's businesses range across both electronic components and finished products. Yet while the success of iPhone produces a 'cash cow' for Samsung, it can strangle the world's largest chipmaker at the same time. Seo expected the Samsung-Apple partership will likely continue, saying 'Apple has recently doubled the capacity of its phones, from 8 and 16 gigabytes to 16 and 32 gigabytes, respectively.' In the July-September period this year, the South Korean electronics giant claimed the largest market share in the global market for NAND flash memory chips with 38.5 percent. A NAND flash memory chip is a computer memory that can be electrically erased and reprogrammed, primarily used in portable electric devices.

Seo said contract prices - the average cost of chips traded in large volume - for NAND flash memory chips have increased more than 8 percent.Īpple has been the largest client for Samsung's NAND flash memory chips. 'Demand for NAND flash memory chips is rising largely on Apple's move to increase the storage capacity of the iPhone,' said Seo Joo-il, an analyst at KB Investment and Securities.Īn increase in storage offers users more space to enjoy music or video clips and use different software applications on the phone. Samsung was the biggest beneficiary of the iPhone sales, according to iSuppli, and other analysts agree that Samsung will remain a key beneficiary of growth in the market for iPhones. launch of iPhone in 2007, market researcher iSuppli estimated that Samsung components made up 29 percent of the prime cost for a unit of iPhone. Market analysts agree that a global sales boom of the iPhone is a significant factor in boosting the South Korean electronics giant's revenues. Yet the explosive popularity of the iPhone - which directly competes with many of the South Korean electronics giant's products - is not all doom and gloom for Samsung. 28 and more than 65,000 units of iPhone were reported to have been sold over the period of less than a week. with a dilemma as it seeks to defend its mobile phone market on home ground while simultaneously capitalizing on its role in the iPhone's production, analysts said Sunday.Īpple began local sales of its flagship product on Nov.

and its growing local popularity are presenting Samsung Electronics Co.

6 (Yonhap) - The successful launch of the cult iPhone by U.S.

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