Although the iPod Shuffle was a hit when it was first introduced on the market, sales of the MP3 player are not justifying the supply forecasts for NAND flash that Apple has secured from Samsung, the sources stated. If Apple cancels the orders, Samsung may release even more NAND flash into a market already being affected by the influx of a number of new NAND flash producers, Shu indicated.More info at DigiTimes
Apple iPod shuffle sales disappointing - NAND flash price might drop

The lack of demand for Apple's iPod shuffle leaves the market wondering what Samsung will do with its NAND flash capacity that it had allotted for Apple. Peter Shu, chairman of Transcend, claims that NAND flash memory prices might drop up to 40 percent in the future.