Apple Inks $1.25B Flash Deal

Online Staff -- Electronic News, 11/21/2005

No big surprise here: iPods are driving flash memory production.

Apple Computer Inc. said today that it has reached long-term supply agreements with Hynix, Intel, Micron, Samsung and Toshiba to secure a supply of NAND flash through 2010. As part of these agreements, Cupertino, Calif.-based Apple intends to prepay a total of $1.25 billion for flash memory components during the next three months.

About $500 million of that is slated for a new flash venture between U.S. chipmakers Intel and Micron.

Apple cited demand for its popular iPod mp3 player as the driver for the deal. To date Apple says it has sold more than 30 million iPods sold, and that there are more than 1,000 third-party iPod accessories now available.