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Future iPods chew 25% of world flash supply?

updated 11:45 am EDT, Wed July 18, 2007

Apple Quarter of All Flash

Apple is poised to consume a full quarter of worldwide flash memory production during the summer, according to a new report from DRAMeXchange. The research group estimates that while Apple is receiving an exceptionally large amount of NAND flash for the iPhone and iPods during the summer in anticipation of the holiday season, this in tandem with production troubles with newer, denser flash chips is creating a shortage for other companies that might want flash for their own devices. The cut in readily available memory has sent prices upwards for the past three months to try and curb demand, and has already forced some electronics makers "unable to secure" some of the storage they need, DRAMeXchange says.

The price changes may not immediately affect Apple and some other established firms, many of whom already have fixed price contracts in place. However, the researchers believe that memory factories can only scale their efforts over the course of the next two to three quarters, which would leave an immediate shortfall in the summer and create problems until suppliers are genuinely ready in 2008.

Although DRAMeXchange does not cite sources for its numbers, its report echoes warnings from Samsung as early as March, when the Korean company's chief said a reduction of factory output along with the iPhone could put extreme pressure on global flash memory supplies.




by MacNN Staff

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Comments

  1. danviento

    Joined: Dec 1969

    0

    Not an issue

    Analysts always get more press when they make announcements like this. If the demand truly is this high, you know someone is going to cash in on the deal to meet it to make a whole lot of money. Factories for a demand like this pay for themselves in no time, so it's not a high-risk situation. Things tend to balance themselves out. Even Joe-shmow can tell you that.

  1. elroth

    Joined: Dec 1969

    0

    re: not an issue

    Danviento is right - things tend to balance themselves out.

    --Joe Schmoe (please spell my name right next time)

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