iPod and iPhone causing flash memory shortage – report

Taipei (Taiwan) – Brisk sales of Apple’s iPhone and iPod are fueling a worldwide shortage in flash memory chips according to a new report issued by DRAMeXchange. The memory clearinghouse says Apple’s products are eating up approximately 25% of global flash output.

DRAMeXchange says it will take memory makers like Samsung “two or three” quarters to raise chip yields. The report adds that a flash chip shortage will occur in the third quarter.

8 gigabit flash chips traded at just over $9 each at the beginning of the year, but have since risen just below $11 a piece. These prices are much higher than what Apple is paying for now, according to a recent iPhone teardown by market research firm iSuppli. Apple has locked in flash chip prices at approximately $6 for each 8 gigabit chip.