The New York Times reported that an arm of Samsung is considering purchasing "flash memory maker, SanDisk, in a deal that could reshape a struggling industry." Flash drive prices are declining across the board, but Samsung's decision to purchase SanDisk would "expand their market share" and reduce their "licensing costs." The key part of the decision, however, would probably be the competitive edge it would grant to Samsung. Toshiba is another company that creates flash memories, and it is planning to eclipse Samsung's share in the market by jacking up their production and getting into a partnership with SanDisk. Samsung's plans to purchase SanDisk, to me, is obviously a pragmatic and well-calculated business move. And I think that should this buyout push through, Samsung will not come out as the only beneficiary. I see SanDisk standing to gain from this deal as well. SanDisk is quite a popular brand, but Samsung's wider household name status should be helpful for any electronics company wanting to expand its market reach.
ORIGINAL ARTICLE: http://www.nytimes.com/2008/09/06/business/06samsung.html?adxnnl=1&adxnnlx=1220734887-XUs5SfwCPOzsY1j6ki1hjg
PHOTO SOURCE: http://imago.techtop.it/d/286-1/samsung-SCH-B330.jpg
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