Apple announces over 30 million iPods sold, reaches long-term supply agreements for flash memory

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

“We want to be able to produce as many of our wildly popular iPods as the market demands,” said Steve Jobs, Apple’s CEO in the press release.

iPod and iTunes are leading the digital music revolution, providing the best way to listen to music on-the-go, at home and in the car. With over 30 million iPods sold, the iPod is the world’s most popular digital music player and the iTunes Music Store is the number one online music store with over 600 million songs purchased and downloaded worldwide. The iPod economy also continues to flourish, with over 1,000 third-party iPod accessories now available.

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21 Comments

  1. Repent! The end of the world is near. God will come down from the heavens spitting bolts of lightning, and half the world will be flooded in scratched plastic and electronic debris – hallelujah! Brethren, load your iPods with ny eBible and ye shall be spared the wrath of the Lord.

    MW: medical as in breakdown.

  2. What this high demand for flash memory will do is create more production facilities, competition, to drive down prices so we can eventually see our Nano Notebooks. No more hard drives!

    Hard drives are seriously obsolete, they take too much power, are too fragile and are slow.

    Now to replace the cd/dvd drive as a means of transporting files, a USB or a Nano would be a excellent replacement.

    To burn a dvd/cd, a seperate powered device wil be needed, which can be hooked up to the Nano notebook or Mac mini’s.

    To watch Blue Ray DVD movies, a active internet connection will be required to verify and descramble the content. (also to disable your DVD player if tampered with)

    So since (1) Power needs and (2) Internet needs will be required of Blue Ray DVD players, they won’t be in Nano notebooks, but a seperate device with Apple DRM encoding going to the Mac monitor.

    Any portable movies will be *cough* sold via iTunes or a low grade version copied from Blue Rays DVD’s.

    So you see now how it’s all coming together. 😀

    Wait for the Mactel Nanonotebooks with all flash RAM.

  3. To COMPLETE the deal, Apple dropped $1.25B upfront, which would probably go directly to capital improvements in the plants to guarantee capacity. While this is a lot, remember Apple has $10 per share in CASH, that’s tens of billions of dollars and no debt…so yeah it isn’t anything to sneeze at, but investing $1.25 now to ensure supply of a critical component is good use of capital.

  4. Bring your own music Karaoke Outlet. Load up your iPod with your favorite karaoke converted laserdisk tracks and get together with a few friends in a rented room with screen, speakers, and queuing device with multiple iPod inputs. Select your favorite Motoharu Sano track and grab the mike. Oh Angelina. Kimi wa ballerina….

    Oh wait … <objects/MZStore.woa/wa/viewAlbum?playlistId=90148054&s=143462&i=90147932″>wrong song</a>.

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