Apple to eat up 25 per cent of flash supplies

Record sales of iPod, iPhone could mean price hikes

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Record sales of the Apple iPhone and Apple iPod means that Apple will use up a quarter of global supplies of flash memory during the summer.

This could force flash memory prices up, as manufacturers produced less less flash memory during the second quarter of 2007 due to lower yield rates, says market research firm DRAMeXchange.

It can take up to three quarters before flash memory makers catch up and raise their chip yield rates to a higher level, according to DRAMeXchange. This suggests that any price drops on the Apple iPhone and Apple iPod look unlikely, as Apple is probably stocking up on as much flash memory it can find.

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