Digital Home Thoughts: Chip Shortage Will Hit MP3 Players

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Thursday, October 27, 2005

Chip Shortage Will Hit MP3 Players

Posted by Suhit Gupta in "NEWS" @ 05:00 PM

http://www.pcworld.com/resource/article/0,aid,123223,pg,1,RSS,RSS,00.asp

"An industry-wide shortage of a key flash memory chips will hit the availability of some models of MP3 player during the upcoming holiday shopping period, the head of Creative Technology's U.S. unit said Wednesday. The shortage of flash memory, according to industry analyst speculation, is primarily a result of a special deal that Apple has secured from a key supplier for the holiday season. Apple is widely reported to have signed a deal with Samsung Electronics to secure a supply of flash memory for its music players, particularly the recently-launched iPod nano, which replaced the hard-disk drive-based iPod mini in the company's music player lineup."

Interesting because I thought Apple and Samsung were at odds lately. Although I guess the contracts are already signed so the memory has already been allocated. But what is even more interesting is that given the increasing demand for flash based players and devices in general, I am surprised that manufactures haven't stepped up the production of flash chips.

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