Flash memory production will fall next year because a number of bulk orders have been suspended or cancelled, according to SanDisk.

The NAND flash memory manufacturer admitted it has reduced production, also blaming a slump in prices for the downturn in production. Meanwhile, Toshiba denied rumours it planned to stop production completely between December 27 and January 4.

Profits from flash memory, which is commonly found in MP3 players, mobile phones and other handheld devices, are thought to have dropped by 13.1 percent for 2008. iSuppli analysts have predicted the market will see a further 15 percent drop in profits during 2009.

See also: Samsung stops pursuing SanDisk