Nano putting the squeeze on OEMs

going out of business

If you're like us, you were always peeved at the kid on the playground who habitually got special privileges because he was either bigger, better, or badder than everyone else. Well that kid is all grown up now, and has morphed into Apple Computer, whom the New York Times reports is putting small electronics manufacturers out of business left and right due in part to the sweet deal they got from Samsung on flash memory for the iPod nano. Big Bad Apple (geez, we remember when those adjectives only described Microsoft) is putting the squeeze on small OEMs by simultaneously snatching up a good portion of the available NAND flash devices (diminishing supply and driving up costs for other manufacturers) while at the same time offerring the nano for very reasonable prices (those bastards!), forcing other manufacturers to lower their own prices and accept thinner profit margins. So next time you are marveling at the fact that your $200 nano only cost $90 to make, take a moment to consider the almost 200 Asian businesses (according to Nam Hyung Kim, principal analyst at the iSuppli Corporation) that had to close up shop as a result.

[Via The iPod Observer, thanks Corey]