Samsung's Goldilocks Flash Pricing Gets It In Trouble

from the regulation-via-fairy-tale dept

These prices are too high: Samsung will pay a $300 million fine after pleading guilty to price fixing in the US, following government allegations it and two competitors (which have already pled guilty) conspired to fix the price of their chips between 1999 and 2002, citing a number of companies as victims, including Apple. These prices are too low: the plea and fine come a week after Korean authorities said they were looking in to investigating Samsung for setting prices of memory it sold to Apple too low. Apple reportedly secured some 40 percent of Samsung’s quarterly flash memory output for the launch of the iPod nano, and there are allegations that the volume discount it got put prices at below-market rates. Times are a bit rough for Samsung, as its electronics business is expected to post another losing quarter Friday, while the Samsung Group, South Korea’s largest conglomerate, deals with a number of scandals at home. What will it take for Samsung to get prices just right?


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