Macrumors is posting a story that links the rumor that Apple has been stocking up on NAND flash memory for iPods with a prediction that the iPod Nano will soon be reaching holding capacities of 12 gigabytes.
The iPod Nano did not have as big a launch as Apple had hoped, but the Nano is still an important part of the iPod brand. Apple is hoping to get the right price/point ratio for them to take off.
Positioning itself to purchase a significant portion of the NAND flash memory available could allow a bulk purchase that allows Apple to drop the price and raise capacity of the Nano. That would be an attractive combination. And if it comes right before back to school season it may prove a profitable one.
[Disclosure: I own Apple stock at the date of this post]
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