DigiTimes reports weaker than anticipated iPod shuffle sales - which it fears may stall the flash memory market.
"Weaker than expected sales of Apple’s iPod Shuffle has market sources wondering what Samsung Electronics will do with the large proportion of flash capacity it has allotted for Apple," it reports.
Local market analysts predict the news could force flash memory prices to fall by as much as 40 per cent the report explains.
Macworld has learned that Apple's iPod shuffle marketshare in the US, which stood at 58.2 per cent in March, declined to 52 per cent in May, according to NPD Techworld.
Recent reports claimed Apple to be preparing to execute a plan to revivify shuffle sales by introducing 2GB versions this month, with 4GB models rumoured to debut in August.