New iPods to use Toshiba flash memory?

Toshiba has reportedly agreed to supply Apple with flash memory chips—presumably for the much-rumored flash iPod. China Daily reports that Yasuo Morimoto, senior executive vice president at Toshiba, has confirmed his company will start selling the memory chips to Apple “early next year.” Merrill Lynch analyst Steve Milunovich expects Apple to introduce a cheaper flash memory-based iPod at Macworld Expo in January. Toshiba currently supplies Apple with the 1.8-inch hard drives that the company uses in its 4G iPods.