Apple Might Turn to Israel for New Flash Memory Supply

Calcalist, an Israeli business newspaper, is reporting that Apple could purchase Anobit, an Israel-based technology firm that specializes in flash memory for mobile devices. The deal could be worth as much as $500 million, which would make it the largest ever acquisition for Apple. What’s worth a half of a billion dollars for Apple?

Anobit specializes in making flash memory bigger and more efficient. That’s a big draw for Apple, who still gets some of the flash memory for the iPhone 4S from Samsung, a company Apple has increasingly strained relations with. Anobit could become a very important pawn in the chess game between the two tech giants – Samsung itself currently gets some of its flash memory from the Israeli company.

An in-house flash memory maker would drive down production costs for the iPhone, iPad, and MacBook. Apple would also be laying a bet on the quality of Anobit’s many patents – the more efficient Anobit’s technology becomes, the better it will be for battery life of devices, something the iPhone 4S has caught plenty of heat for since its release.

Anobit, if it is indeed purchased by Apple, would remain based in Israel, with Apple possibly investing more in the company in Israel to reap the rewards of its purchase faster. It sounds like we should know whether or not the deal goes through soon – either way, it’s big news for Apple, which hasn’t exactly made a habit of buying other companies to the same extent as competitors like Google.


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