Apple secures flash memory supply deal for $1.25 Billion

Apple is betting big on their iPod range of music players, which uses flash memory for storage space. They have secured flash memory supplies for a reported sum of USD 1.25 Billion. They have reached long-term supply agreements with a group of flash memory components makers including Intel Corp. and Micron Technology Inc. for this purpose.

They are going to prepay $1.25 billion in the next three months for this deal to secure constant and regular supplies of flash memory, which powers some of their massively popular versions of iPod range of music players. The company has said that the payment is a part of a series of agreements reached with NAND flash memory suppliers, which also include Samsung Electronics Co. Ltd., and Toshiba Corp.

The agreement would give the company constant supplies till the year 2010. Apple Chief Executive Steve Jobs said in a statement about this deal: “We want to be able to produce as many of our wildly popular iPods as the market demands.” the kind of flash memory used by Apple in iPods is also heavily in demand for other digital devices like mobile phones and digital cameras.