Samsung loses $10 billion market value on Apple order report by liyanage64


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									Samsung loses $10 billion market value on Apple order report

SEOUL (Reuters) - Shares in Samsung Electronics Co slumped more than 6
percent on Wednesday, wiping $10 billion off the electronics giant's
market value, on a report that Apple placed huge chip orders with
troubled Japanese chip rival Elpida.

Taiwan's DigiTimes, an online trade news site, reported that Apple
recently placed large mobile dynamic random access memory (DRAM) orders
with Elpida's 12-inch plant in Hiroshima, Japan, securing around half the
facilities total chip production. It cited unnamed industry sources in
its report, which hit shares of major chip suppliers to Apple.

SK hynix shares closed almost 9 percent lower   at a 20-week low - the
biggest one-day drop in nine months. Samsung,   the world's biggest DRAM
maker, tumbled 6.2 percent to a 9-week low of   1.23 million won ($1,100) -
the stock's biggest daily fall in nearly four   years.

"It looks like Apple doesn't want to see Samsung and hynix dominate the
chip market. Apple wants to maintain its bargaining power by keeping
Elpida running," said Choi Do-yeon, an analyst at LIG Investment &

U.S.-based Micron Technology Corp is in talks to acquire Elpida's
business as the Japanese firm tries to restructure after tough market
conditions and global competition drove it into bankruptcy protection.

"A merged Micron-Elpida could pose a significant threat to South Korean
memory chipmakers, and Elpida's huge order from Apple was the spark that
triggered these worries," said Lim Dol-yi, an analyst at Solomon
Investment & Securities.

Samsung declined to comment, as did the Japanese court-appointed trustee
handling Elpida's rehabilitation.

A spokeswoman for SK hynix said: "We are receiving more orders for mobile
DRAM chips from our customers." She declined to comment on whether Apple
had reduced orders from the firm.

Technology shares were also impacted by a broader sell-off after talks to
form a new Greek government failed, stoking concerns the country may exit
the euro zone and increase financial market uncertainty. Shares in flat-
screen maker LG Display slid 4.5 percent. Hyundai Motor lost 4 percent..

"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
Rhoo Yong-suk, an analyst at Hyundai Securities. "It was just unfortunate
timing that coincided with jitters surrounding Greece."

(Reporting by Miyoung Kim; Additional reporting by Joonhee Yu and Hyunjoo
Jin in SEOUL and Mari Saito in TOKYO; Editing by Jonathan Hopfner and Ian

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