With demand high for both iPods and iPhones, Apple finds itself as one of the primary consumers of NAND-based flash chips. According to market intelligence firm DRAMeXchange, devices like the iPhone and the iPod are on track to consume no less than 25 percent of the total Q3 NAND flash capacity. The downward effects are dramatic. Many downstream vendors are being left “flash-less” with many flash providers giving emphasis to Apple’s needs. The firm predicts that there will be a fairly substantial flash chip shortage during the third quarter of this year – with prices continuing to rise as a result of high demand and low supplies.

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