News 

'We are investigating whether Samsung has been unfairly supplying Flash memory chips to Apple at cheaper prices than applied to domestic music player makers,' a spokesman for the country's Fair Trade Commission explained.

Samsung, however, did not appear too concerned.

'The deal hasn't breached any laws so we believe there will be no problem,' said Lee Soo-jung, the spokeswoman. Bulk discounts are as common, and legal, in South Korea as they are anywhere else.

Apple has since signed a new deal with Samsung and other Flash memory makers to secure a supply until 2010. Samsung has revealed that as the world's leading manufacturer it will get $500mn share of Apple's $1.25bn initial payment.