Samsung Loses $10 Billion In Market Value Due To Loss In Apple Business
Shares of Samsung Electronics Co. has dropped 6%, causing a $10 billion market value loss after it was reported that Apple was working with a rival company called Elpida for massive chip orders. Taiwanese news company DigiTimes talked to a source whom reported that Apple placed a large mobile dynamic random access memory (DRAM) order with Elpida’s plant in Hiroshima, Japan. This not only affected Samsung, but it also hit SK hynix whose stock closed 9% lower at a 20-week low.
Micron Technology Corp. is also in talks to acquire Elpida’s business in order to restructure. Micron and Elpida combined would pose a threat to memory chipmakers in South Korea.
“Samsung shares were already facing pressure since offshore investors began cutting back on risk during the latest streak of sell-offs, but the news surrounding Elpida was the straw that broke the camel’s back,” said Hyundai Securities analyst Rhoo Yong-suk in an interview with Reuters. “It was just unfortunate timing that coincided with jitters surrounding Greece.”