updated 04:50 pm EDT, Mon October 2, 2006
Muted iPod nano demand?
Analysts at Baird U.S. Equity Research believe that Apple may be experiencing muted demand for its second-generation iPod nano, which could negatively effect NAND flash memory pricing. "We believe Apple did not meet its NAND flash order schedule this month," wrote analyst Tristan Gerra. "While it is difficult to assess the performance of the new Nano product family as Apple retailers have been directed to not comment about the iPod's sales performance, the initial feedback we are receiving from industry sources suggests Nano volumes are not as strong as in the same period a year ago, which we do not view as a surprise given the new Nano offering's lack of new feature set besides higher density." Gerra expects the black 8GB iPod nano mix to represent significantly less than 50 percent of Apple's total iPod nano units during the fourth quarter, according to AppleInsider. "These two dynamics lead us to believe NAND spot flash pricing could peak in October, earlier than expected," the analyst said.