Apple will buy up to 40 per cent of Samsung's flash memory output during the rest of the year.

Analysts at iSuppli and Deutsche Bank made the claim today, predicting the components will be used in a new "flash-based iPod mini" with 4GB capacity.

"To support production of its flash memory-based iPods, Apple has booked as much as 40 per cent of the (flash memory) output of Samsung for the second half of 2005, according to our industry sources," iSuppli analyst Nam Hyung Kim told Reuters.

Samsung is the world's largest flash memory supplier, and is reported to have secured Apple as a customer by offering "extremely low prices".