Apple has been reluctant to strike a deal with NAND flash suppliers for this year, as prices remain at high levels, according to a DigiTimes report.
Despite the current slow demand for memory cards and flash drives, major chip suppliers especially Samsung Electronics continue to give priority to profitability over shipment volume, according to the sources.
Also, foundry partners including United Microelectronics Corporation (UMC) and Semiconductor Manufacturing International Corporation (SMIC) have become concerned that growingly tight foundry capacity may disrupt shipments and affect NAND flash pricing.
Sources say, "Apple may start negotiating long-term supply contracts with its chip partners in the second quarter. Apple's demand will continue to play a significant role in the NAND flash industry in 2010."
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