iPhone, iPod sales set to drive up cost of flash memory

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NAND Flash memory prices have risen four to seven percent in the last months as NAND producers move to a new more advanced manufacturing process to make even thinner chips. This, combined with Apple’s voracious consumption of Flash memory could further drive up prices in the coming months, according to a report released by Taiwanese market analysis firm DRAMeXchange.

According to the report, iPod and iPhone are expected to consume over 25 percent of the global NAND Flash memory supply in the third quarter of the year. And with demand expected to soar in the fourth quarter owing to the holiday season, DRAMeXchange expects a major shortage and rising prices to continue.

Major chip makers including Samsung and Toshiba are hoping that new products from Apple and other mobile handset makers will help boost their business for the remainder of this year. DRAMeXchange said it would take about two to three quarters before manufacturers can raise their chip yield rates to a higher level.

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