Apple readying 16GB, 32GB flash-based video iPods?

UBS analyst Alex Guana said yesterday that Apple could use NAND flash memory, as opposed to tiny hard disk drives, in the next version of the video iPod.

Guana said that the company will more than likely introduce two new models—a 16GB and a 32GB iPod.

The analyst also said that flash memory maker SanDisk would benefit from the switch and upgraded the company’s stock from a “neutral” rating to a “buy.” Guana noted that a flash-based video iPod would help increase demand for the memory and drive up its value.