Daaaamn, talk about clout. If DigiTimes' sources are correct, then Samsung, the world's primary supplier of flash memory, just told its non-Apple customers to suck it in favor of a "large batch of orders" it received from Cupertino. The order is said to be for 50-million "8Gb-equivalent" (we assume they mean gigabyte, or GB) NAND chips "mainly for use in Apple's iPhone." This order follows a June procurement for 25 million of the same chips. In response, Samsung has reportedly told its lesser customers that it would "sharply cut supply" of NAND to them while the order is being fulfilled. The shortage is compounded by Samsung lowering its manufacturing output in April and May in an attempt to reduce oversupply. Still, if these numbers are true (they seem high and DigiTimes can be hit or miss with its Apple sources) then the world is about to be awash in iPhone 3Gs come July 11th.
Update: We've given the Gigabits vs. Gigabytes a bit more thought. If it's 50 million 8Gbit chips as stated, they would divide evenly across about 2.1 million 8GB iPhone 3Gs plus another 2.1 million 16GB models. A reasonable production run for Apple's global launch but an order which shouldn't be so taxing on Samsung's production capability. Something doesn't add up.