Apple will soon release a video-capable iPod that uses flash memory, Taiwanese sources claim.

Component makers there warn Apple's new iPod could exacerbate shortages in global flash memory supplies, according to DigiTimes.

Supply should improve after mid-September when fresh capacity comes on board, the report says. The report also claims the iPod will have a "storage density" of 16GB.

Apple has been rumoured to be working toward offering an iPod video that's equipped with flash memory, though a 16GB capacity makes it less likely the company will phase out hard drives across its iPod range.