Rumours that Apple has had to delay the launch of a revitalised iPod range has generated a flash memory price war between memory makers.

DigiTimes reports that Hynix and Samsung (who account for 60 per cent iof the market) are being particularly aggressive, with 10 per cent price drops revealed as the industry heads toward a price war.

The report reveals that the capacity of the forthcoming iPod nano is expected to be set to an upper limit of between 10-12GB, but that the product won't launch until the fourth quarter of 2006.

It also reveals that flash memory sales are "conservative" as a result of the rumour, which has impacted across the entire market. Price declines have reached as far as 14.4 per cent, it says.