Samsung supplies NAND to Apple's iPod nano

Staff -- Purchasing, 10/20/2005

Samsung is supplying NAND flash memory chips used in Apple's new iPod nano which stores and plays music digitally.

The four gigabyte nano devices use two NAND chips that have an estimated value of only $54, according to iSuppli. The market researcher did a breakdown of an iPod nano and analyzed the various components. The flash chips were in a 1gigabit x 8 configuration.

"By switching from hard drives to flash memory for a key iPod model, Apple has radically altered the dynamics of both the memory market and the MP3 player market," says Chris Crotty, senior analyst for consumer electronics at iSuppli.

He says that Apple's competitors may find that procuring sufficient flash memory will be a challenge.

Samsung is the largest supplier of NAND flash, and Crotty estimates that Apple will buy as much as 40% of Samsung's' output in the second half of 2005, leaving less for other OEMs.

Competition for the remaining flash supply may result in price premiums, he says.