Flash memory makers have seen shares slide on news of the joint deal between Intel and Micron.
Yesterday Apple revealed it will spend $1.25 billion across the next three months in order to secure flash memory supplies until 2010. The company uses that type of memory in its iPod shuffle and iPod nano.
While the market welcomed the cash input, it was concerned at the link between Intel and Micron, with investors fearing the deal could mean flash memory would be oversupplied.
Reuters reports that shares in Samsung, Toshiba, Hynix, SanDisk, Silicon Motion all fell, Samsung by 5 per cent. This drop occurred despite Apple's revelation yesterday that it is paying Samsung $500 million and Hynix $250 million to secure flash memory supplies.