Apple may launch a flash memory-based iPod product this Christmas.

Semiconductor company, SigmaTel, last week revealed that it would be supplying chips for a music player to Apple, Associated Press reports.

A Thomas Weisel analyst claimed Apple will employ these chips in a flash memory-based device, expected to be cheaper, lighter, but of lower capacity than existing iPods and iPod minis.

Apple CEO Steve Jobs has in the past said that flash-based music players are too limited in capacity in comparison to Apple's products, and also once described them as: "The kind of music players that end up in the drawer and never get used".

Apple's iPod mini was deliberately designed and priced to appeal to buyers in the upper end of the flash memory-based music player market.