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To: Pam who wrote (31735)	3/31/2006 11:09:47 AM
From: inaflash	Respond to of 60323

Every quarter, Cupertino, California-based Apple will match orders to Hynix from the preceding three-month period or buy at least 20 percent of the company's NAND production, whichever is larger, according to the document. The chips will be sold at a price that won't exceed what was specified in the December agreement, Hynix said, without specifying the amount. This is a very long agreement. Any info or speculation as to how the price adjustments will be handled? It could be based on some fixed price points based on past drops and expected levels, but Hynix would be taking a big chance there on meeting the targets. It may be contract or spot price based, but that doesn't afford Apple any advantage, other than locking in a fixed supply.

To: Pam who wrote (31735)	3/31/2006 11:23:32 AM
From: inaflash	Read Replies (2) \| Respond to of 60323

Apple, which uses NAND as the main component for its iPod Nano music players, agreed in December to buy 40 million gigabytes of the chips this year from Hynix, according to the Ichon-based company's annual report submitted to regulators today. Apple said it would increase orders by at least 180 percent a year until the end of the decade, according to the document. Is that really 40 million GB? (not Gb)? Seems too high. That's enough for 10 million 4GB nanos or 40 million 1GB nanos. Isn't that the majority of the flash being used by Apple? They wouldn't need most of the other suppliers or are plannning large growth rates if they bought similar levels from other suppliers (Samsung).