Apple's share price fell yesterday after SigmaTel – the manufacturer of iPod memory chips – cut it's outlook.

The company cited lower-than-expected sales and resulting price cuts, claiming that prices for NAND flash chips have declined more than 30 per cent over the past three to four weeks. SigmaTel expects prices to drop another 40 per cent over the next few months.

CIBC analyst Daniel Gelbtuch believes that the lower orders could translate into lower sales of Apple's iPod Shuffle, which uses flash memory, reports Reuters.