Obvious Diversion

There’s a second story behind the launch of the iPod Nano and that story is that in order to get the price so low, it purchased 40% of Samsung’s flash memory production. In doing so, it is now believed that Apple is getting their hands on memory at a dramatically lower price than any of the competition is capable of. As tough as it is for competitors to compete with the iPod on features and experience, Apple just made it exetremely difficult for them to even compete on price.

The other thing this brings up is what is Apple going to do with all that cheap flash memory? The iPod is likely only a part of the story and we are going to see additional types of devices take advantage of flash memory from Apple in the future.