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February 19, 2009 4:13 PM PST

Apple snapping up flash memory for new iPhone?

by Tom Krazit
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A surge in Apple's orders of flash memory may signal that a new iPhone is on the way.

(Credit: CNET)

It's been clear for a while that Apple seems to have settled into midyear iPhone refresh cycles as it closes in on the two-year anniversary of its debut, but more signs are pointing to a summer launch.

Think Equity Partners put out a report this week, spotted by AppleInsider, that says Apple has essentially cleaned out Samsung's supply of flash memory in recent weeks. Apple has also asked Toshiba and Hynix to step up with more flash memory, according to Think Equity, as it prepares for an iPhone launch.

Apple has a contract in place with the three companies, as well as Intel and Micron, to supply flash memory for Apple's products through 2010. But Apple tends to launch new iPods in the second half of the year around a September music event, making it much more likely that this buildup has a new iPhone in mind.

In January, Apple senior vice president of worldwide marketing Phil Schiller hinted that Apple has settled on a midyear refresh cycle for iPhones, after launching the original iPhone in late June and the iPhone 3G in July. The spring parade of iPhone rumors has not fully blossomed as of yet, but one persistent rumor is that Apple has some sort of low-cost iPhone in the pipeline, based on CEO Steve Jobs' comments about price umbrellas during an earnings conference call and a recent report suggesting a $99 iPhone is on tap.

Apple COO Tim Cook, however, has dismissed talk of Apple playing in the entry-level phone business, so as usual, it's hard to tell exactly what Apple has in mind. But even if all Apple did was double the storage capacity of the iPhone to 16GB and 32GB, it would need a lot more flash memory chips.

Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom.
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by shootthecops February 19, 2009 4:52 PM PST
these kinds of articles make me skeptical of the companies that have high prices on large flash hard drives. flash has been selling well on the consumer market for ages, but its still not cheap enough for big hard drives... or so we are told.
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by random truth February 19, 2009 5:15 PM PST
I think apple gets a discount from how much flash memory they buy. Which also raised the price for other manufactures.
by kingrah1 February 19, 2009 6:49 PM PST
If they do make a new one it better be a complete overhaul and not the same thing as the current one but with minor upgrades like the iPhone 3G. iPhone OS 3.0 would be nice with customizable skins, layout, and have the option to change the layout so you dont neccesarily have to have just buttons(like have ones that have updating IE:weather one shows current temp) and maybe a default VIOP app. Stereo bluetooth is a must. Also a better camera with zoom and exposure control. And lets not forget expandable memmory. And to make it an even more up and out there phone put a small camera on the screen side for video calls. Hopefully FLASH will be available by then too.
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by ywkhgqo February 19, 2009 8:17 PM PST
why don't you just buy a net book then? jeese.
by grabbb February 19, 2009 10:27 PM PST
actually you can do most of those things if you hack your phone.
when I think back on what my phone was when I first got it to what it does now, it just makes me laugh.
I have video, night camera, I can zoom in on pictures, crop and edit them afterwards, I can listen to music while I'm on the internet (i.e. run TWO applications at the same time), you can put your apps in folders, you can Hide your folders and apps. Oh and one of the cool things is that you can access all the music on your computer from your phone, which means that you don't need a 16GB phone to have a lot of your own music, OR someone else's (if you choose to share your library) right at your fingertips.
The iPhone can be amazing when it's hacked.
by ausernamenoonehaschosen February 20, 2009 4:31 AM PST
Grabbb, to clarify, you can run multiple native apps at the same time on the unhacked iPhone (i.e. listen to music while surfing the net while your email checks for new mail). It can't run multiple third party apps. Everything else you said is true.
by Mac User Too February 20, 2009 7:00 AM PST
Yeah - double jeez!
by juanantoniod February 20, 2009 5:37 PM PST
grabbb, with all due respect to your iphone hacking, can you hack it to do stereo Bluetooth? That is a big feature to have missing from an "i"phone!
by grabbb February 20, 2009 8:34 PM PST
to be honest I don't really care about bluetooth. I had it on my previous phones too and never used it.
by Hep Cat February 19, 2009 9:48 PM PST
"But even if all Apple did was double the storage capacity of the iPhone to 16GB and 32GB, it would need a lot more flash memory chips."

Yeah! They'd need, like, TWICE as many, man!
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by AppleSuxLeo February 19, 2009 10:12 PM PST
The bad economy may be catching up with Apple.
While Mac sales have outpaced Windows PCs for months, January saw the reverse at U.S. retailers, including Apple Stores, NPD Group said Thursday. Mac sales fell 6% in terms of units sold compared with the same month a year ago, and 11% in terms of revenue.

Windows PC sales on the other hand were up 13% in terms of units, while revenue was flat as consumers sought out less-expensive models.
NPD analyst Stephen Baker said Apple sales fell for two reasons: price and the fact that the iMac desktop has not seen a refresh since April.
Bottom line is Apple Sux ! And it will get worse for Apple.
BTW , Sprint was up 20% today...Apple down 5% Bwahahahahahaha!
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by random truth February 20, 2009 12:23 AM PST
Thats not what the changewave survey shows.It shows that apple is up 4% from last year and that more people intend on buying an apple computer vs. the next highest oem, hp.
by kelmon February 20, 2009 2:55 AM PST
Yes, because the analysts are always right? Personally, I'll wait for the financial results to be posted.
by kelmon February 20, 2009 2:57 AM PST
Whatever appears this year I simply hope that it comes with full GPS functionality and a higher memory capacity.
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by liverpooldabst February 20, 2009 3:24 AM PST
will it be better than de n97
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by seven7dust February 20, 2009 5:55 AM PST
de n97 and all Nokia phones will always have newer hardware and more features
but the software and implementation of these features will always be years behind
but all Nokia fanboys will tout features and
keep saying that Nokia makes the best phones known to mankind
but when compared to Japanese/Korean phones they'll loose out even on the features front
So it's hard to say ? depends on wat your looking for in a phone
if it spec sheets then N97 is better but on the usability front nothing holds a candle to the Iphone , atleast among touchscreen phones !
IMO the best way is to actually use the 2 and decide for yourself !
by zeista February 21, 2009 7:24 AM PST
Cool Handphone...
but it can be blender... see it here
http://zthinkz.info/2009/02/21/blend-it-baby/
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by artistjoh February 22, 2009 6:33 AM PST
Since new iPhones are very likely that is a reasonable suggestion. iPod Touch is also a very likely culprit but there are 2 more possibilities that no one seems to be considering. Firstly a game optimized variant of the Touch. Secondly a netbook could easily be being secretly prepared, possibly as a larger screened variant of the iPhone/iPod Touch form factor. The repetition of the phrase "interesting ideas" in regard to a netbook is unusual terminology for Apple, and makes me think they have something up their sleeves.
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