We believe the outlook for the NAND flash market in the long term as well as the near term will be even brighter than the market's current positive view," Lehman Brothers analyst Sangwan Kang wrote in a recent report.
"Our confidence relies on further (NAND) demand diversification into various consumer electronic products and mobile devices."
Prices of NAND chips on the spot market have been rising in the past few weeks due to strong demand and tight supply. A deal with Apple and the two Korean NAND flash producers would lead to an even tighter supply of the chips in the global market, analysts said.
Early Wednesday, the price of a 1-gigabit NAND flash chip was $8.22, up 0.2% from Tuesday, according to DRAMexchange, an online chip clearinghouse.