iPod nano Likely to Help NAND Flash Market 'Explode'

Apple reportedly purchased as much as 40% of Samsungis NAND flash memory output for use in the new iPod nano, which research firm iSuppli expects to lead to a situation in which the NAND flash market "will explode during the coming years."

With Samsung recently introducing a 16Gbit, multilevel cell, "NAND flash density now is on track to double every year," writes analyst Nam Hyung Kim in the report, a copy of which was obtained by The Mac Observer.

In the short-term, the research firm sees impact from the iPod nano in the form of "the beginning of a wave of consolidation in the MP3 market." iSuppli sees many small- and mid-size MP3 player makers disappearing, especially in the China and Asia/Pacific regions.

Mr. Kim doesnit expect the Apple/Samsung deal to impact the DRAM flash market in the short-term. However, iSuppli sees a long-term fallout from this, with "increased production of NAND flash likely to constrain growth in DRAM supply, propping up pricing for DRAM in the more-distant future."