Apple may build 3 million 3G iPhones by June, with at least 10 million phones built by year end, according to proprietary checks by researchers at Lehman Brothers.

On that, the market research company expects a near-term boost to the NAND prices and a coinciding increase to Micron's stock price.

"We believe shares of US-based memory leader MU [Micron] may benefit in the coming weeks from improved sentiment as NAND spot pricing trends may see some firming underpinned by AAPL's [Apple's] re-emergence in procuring commodity flash for its 3G iPhone build," Lehman semiconductor analyst Tim Luke wrote in a research note this morning.

Holding its place as the world's third-largest OEM buyer of flash, Apple's weight in the memory industry is indisputable.

When the company earlier this year slashed its expected 2008 flash order forecast, analysts at iSuppli reacted by reducing their outlook for global NAND flash revenue growth in 2008 to the single-digit percentage range, down from the market research company's previous outlook of a 27% rise.

On adjusted forecasts from NAND buyers, iSuppli reported earlier this month that global revenue for the flash memory is now expected to rise to $15.2 billion in 2008, up 9% from $13.9 billion in 2007.

"We believe near-term NAND flash demand, supported by AAPL's build, could drive NAND spot prices higher over the next two-to-three weeks," Luke continued. "Thus, given MU's high stock performance correlation to NAND spot prices, we believe the shares could trend higher over the near-term."

While Apple has yet to state plans for its next iPhone, Lehman holds a conservative forecast of 7.6 million 3G units shipped in the second half of 2008. Researchers at the Envisioneering Group also expect a second-generation iPhone launch in coming weeks to correspond with Apple's June Worldwide Design Conference (WWDC) in San Francisco.

Industry speculation had suggested that Apple would favour Intel's new Atom chip for next-generation iPhones and iPods, based on Atom's low-power consumption and small size, as well as the companies' existing partnership. However, given Apple's recent $278 million purchase of low-power MPU designer PA Semi, the likelihood of an Atom-iPhone agreement seems slim.

Apple did not return calls for comment to our sister site Electronic News.

By Suzanne Deffree, Managing Editor, News - Electronic News

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