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Apple Inc. (AAPL) Vows to Eliminate Abusive Chip Makers – Here’s the Plan

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Things are heating up for Apple Inc. (NASDAQ:AAPL) in the East. The iPhone giant is desperate to rid itself of abusive chip makers and wants its own processor facility, . On the table today is Toshiba Corp and its memory processor business. The Japanese corporation is looking to shed this unit and Tim Cook looks extremely keen.

That would certainly explain why Apple Inc is talking with Bain Capital. If reports can be trusted, the two firms will help each other secure Toshiba’s memory chip unit. Those close to the matter say that the race for the business is hot and sweaty. Industry leaders like Western Digital Corporation and KKR & Co. are all equally eager to get their hands on Toshiba’s junk.

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While Apple Inc. is dealing in the region, it might as well consider the looming issue in China. We are not talking the company’s dwindling popularity in the People’s Republic. Although, yes, that is real point of concern. Regulators in China are actually considering accusations made by the country’s app developers.

The complaints were brought forward by Dare & Sure, an ambitious-sounding law firm siding with developers. It has antitrust complaints to propose. They all cover the unfair removal and heavy costs levied on numerous apps.

China has not decided on what to do yet. According to CNBC, the country’s authority in industry and commerce is just now reviewing the matter. Could Apple be slapped with huge fines, or is another drawn-out legal dispute coming?

Back to Apple supplier Toshiba

Apple is sick of being pushed around by chipmakers and their unfair royalties. What better solution than to get their own in-house unit dedicated to processor creation? Although not an outright answer, Toshiba’s memory chip business is a step in the right direction. Tim Cook and co. are eager to secure it, too, but it is still unclear if they will be successful.

The bid is in the high billions now. Previously, Bain Capital put down a $19 billion bid while collaborating a group of Japan’s top corporations. Those include the likes of Japan’s Development Bank as well as Innovation Network Corporation.

Apple does not allow its mobile products to take in additional memory via a memory card. The internal memory chips on the iPod and iPhone are derived from Toshiba. Now that the Japanese company no longer wants this business, Apple Inc will have to get it from whomever acquires it. That doesn’t sit well for the premium tech giant, which hates having to turn to rivals in order to get components

Apple Inc. (NASDAQ:AAPL) values its suppliers and enjoys locking them in with long-term agreements. The Toshiba sell-off rids the iPhone maker of a trusted flash memory supplier. Michael Walkley asserts that the firm can’t let that go, not without a good fight. “There is a supply shortage of that type of memory,” he explains. Walkley’s daily occupation includes analytics work Canaccord Geuity.

The Toshiba issue

The Japanese chip giant wants to fund a move into the America nuclear sector. That means bye-bye memory chips in favor of the venture. This is no secret either, and Toshiba has held this business unit on the bidder’s block for months now.

It not just bidding issues the Asian corporation has to worry about. There is also the setback from partners like Western Digital. This corporation claims it has a such a significant stake in the chip business, that it could be considered in its sell-off.

Investors pressure the company to make quick work of this long-winded bid, and accept Western’s offer. Toshiba is resilient, though, and claims that Western’s offer is inadequate. It does not do enough to secure the business’s interests or those of its parent company.

Back to China, and people are mad, too.

Apple is being accused of using its position in the market to do as it likes. This is according to app developers who argue they have been treated unfairly by the company. Apple Inc. is accused of taking down apps from its App Store without due reason. They also slap an unfair 30 percent financial cut on specific apps.

The company is not under investigation, but the Chinese authority of industry and commerce is considering the allegations. The start of August is when Apple Inc. (NASDAQ:AAPL) saw these accusation sent its way. Over 1.8 million people in the country form part of the App Store ecosystem. Depending on the scale of the evidence brought forward, the authorities may decide to ahead with an investigation, too.

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Mvusi Ngubane

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