July 22, 2009 / 7:41 AM / 10 years ago

Apple pre-pays $500 mln to Toshiba in supply deal

TOKYO, July 22 (Reuters) - Apple Inc (AAPL.O) entered into a long-term supply agreement with Toshiba Corp (6502.T) for flash chips, making a $500 million prepayment to the loss-making Japanese chipmaker, a transcript of Apple’s conference call with analysts showed.

The deal is a boon for the world’s No.2 maker of NAND flash chips, which is grappling with sluggish chip prices and competition against bigger rival Samsung Electronics Co Ltd (005930.KS) of South Korea.

The $500 million pre-payment is equivalent to about one quarter’s worth of Apple’s demand for NAND flash chips, sources said. (Reporting by Mayumi Negishi)

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