Apple has been hit by shortages in touch-screens, delaying iPod touch production and impacting flash memory prices, a report claims.

DigiTimes believes touch-screens as used in the device have been in short supply, causing delays to the shipment of the iPod touch. This has affected market predictions that a recovery in flash memory prices would be created by strong demand for the product.

Citing sources the report explains that Apple's original plans had included a major ramp-up in production of the iPod touch as the company put together inventory for the critical Christmas shopping period.

Inventory pile-up was scheduled to begin in September, but component shortages mean its only really coming into effect this month, the report explains.

"The shortages have affected shipments from flash memory makers to Apple," DigiTimes explains. "If the flash makers were able to make shipments to Apple as planned, they would not have had to face pressure to sell their products to other vendors. In the long-term it is unlikely prices in the flash market will stabilize," the report adds.