iPhone bound or something completely different?
Apple has placed an order for 100 million 8Gb NAND flash chips, a majority of those are expected to come from Samsung and may limit the supply of available NAND chips available to other manufacturers for some time.
While many are speculating that the large memory order could be used to produce 16GB and 32GB iPhones the order itself is suspicious because the chips being ordered are a low density chip. Apple has traditionally used high density chips due to the space constraints in the handheld devices. For example, the 4GB iPod Shuffle uses a single high density 32Gb chip.
It is possible that the chips could be bound for a low cost iPhone, iPhone Mini, or something completely unrelated to the iPhone.
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Also, why does the 4GB Shuffle use a 32gb memory chip? It seems like 28gb of that would just go to waste, so why not cut costs and use a 4gb or even 8gb chip? seems a bit odd...
32Gb == 4GB
High density is generally more expensive, but you can fit more in the same amount of space. Physical size of a 8Gb chip is the same as a 32Gb