DigiTimes Rumor Takes a Toll on Samsung, Hynix’s Market Cap

It’s been known for some time now that DigiTimes is the most unreliable source of any news out there; their track record just can’t hold up. However, Time Techland really hurt them with some bad publicity the other day, showing the many readers of the blog that it’s far from reliable. What’s crazy is the fact that in the light of that, Samsung’s market cap went down due to the facts granulated at the rumor mill earlier this week.

Just yesterday, DigiTimes reported that Apple ordered a “huge” amount of DRAM chips from Elpida, which happens to be a competitor of Apple’s usual suppliers — Samsung and Hynix. With that, Reuters reported today that the latter corporations’ market cap dropped by a $10 billion with a 6 percent stock decline; Hynix is smaller than Samsung and dropped 9 percent.

“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 & Securities.

So it seems that even though these rumors are not to be trusted, they still have a dire effect on stocks.

[Reuters]

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