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iPhone - A Tale of Supply & Demand

Last week I ordered another 100 of the ever popular, freshly re-branded, SRG Memory Sticks. I was shocked when placing the order to learn that the cost of a 512mb memory stick had increased from ~$10/stick to ~$14/stick. That's a whopping 40% increase! The sales rep explained to me the Fuji and Samsung, the 2 biggest manufacturers of flash memory, are driving most of their resources towards production of flash memory for the iPhone. So much so that other uses (like SRG memory sticks) are being hit with huge price increases. Unbelievable!