iPod Drives Global Chip Sales Up

Gartner Research predicts computer chip sales will surpass their dot-com high, thanks to high demand for iPods and other portable electronic devices, according to The Mercury News. Flash memory chips, like the ones used in the iPod shuffle and nano, now make up a substantial part of the computer chip market.

Andrew Norwood, Gartneris research Vice President, noted "The continuing strong demand for flash card and USB flash drives in 2005, along with the successful launch of the iPod Shuffle by Apple . . . and the release later in the year of the iPod Nano, will drive this device market to the highest revenue performance in 2005."

Chip sales are expected to jump up 6.9 percent worldwide for 2005, to a record US$235 billion.

The spike in sales is good news for Apple, and the manufacturers that provide the NAND Flash memory chips for its iPod products. Apple recently signed deals to purchase chips from several different companies in an attempt to keep up with consumer demand. As iPod sales climb, manufacturers have a steady revenue stream from Appleis increased chip purchases.

Apple stock closed on Friday at $74.33. In is currently trading at $74.14 in the after-hours market, down .019 (0.26%).

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