Shoppers may face a price hikes for portable media players this Christmas following a 20 percent increase in flash memory prices in the last fortnight, according to electronics wholesaler Chinavasion.com.
In the short term the price rises may have been initiated in reaction to Samsung's recent factory power failure at its flash memory plant.
Such a power outage could have set production back a week or more, meaning a world shortage of flash, Chinavision states.
Apple's demand for flash memory for its successful iPhone and iPod products is creating a knock-on effect on flash memory prices. Apple is estimated to be consuming 25 per cent of global flash memory supply.
Chinavasion.com PR manager Rose Li said: "Flash memory prices are known to be volatile, but this jump in prices is unusually severe and sudden." She warned the impact of the price hikes would in future be felt by consumers worldwide.
Smaller manufacturers of MP3 players have been forced to shut shop in reaction to the price rises, "because their orders just dried up," Li says.
"Delays, shortages, and eventually higher prices in the Western retail market in the run-up to Christmas," are the likely outcomes of the current flash memory price shift.