iPhone and new iPods to squeeze flash memory market

We have become used to the fact that the Apple can heavily influence market prices for flash memory through its portable music player business. With the just launched iPhone and upgraded iPods coming in H2 of this year, the flash industry is preparing for a major impact on the worldwide flash demand and supply situation, DRAMExchange said today.

The market research firm believes that 4 million iPhone will be shipped in H2 2007, which translates in a demand of about 192 million flash chips or about 2.4% of the world’s supply, according to DRAMExchange. However, with strong iPhone sales anticipated for the Christmas season, that share could climb to 5.7% in Q4. In combination with new flash-based iPods, Apple could consume up to 25% of the available flash memory, the market research firm said.