Taiwan based publication DigiTimes is reporting that Toshiba is expected to increase production of NAND to over 90% of its capacity. Despite this massive increase Toshiba has told the market that supply will be limited, suggesting that the supplier is seeing strong demand from Apple.
The information is in line with comments made by Apple's executives last week, who noted that they had made a $500 million prepayment to Toshiba for NAND flash.
Such an increase in NAND flash production would suggest that Apple is planning to release a new product, typically at this time of year Apple would be preparing an iPod lineup refresh in September.