Flash-based iPod by Christmas?

According to a recent analyst's quote, Apple will be using controller chips from an Austin, TX based semiconductor company called SigmaTel in an upcoming version of a solid-state, flash-based music player. The analyst, Jason Pflaum of Thomas Weisel Partners LLC, cited "numerous sources in Asia" and predicts SigmaTel will receive $2-4 million from the deal in the first full quarter.

It must be noted that Thomas Weisel has an investment banking relationship with SigmaTel and that neither the semiconductor company nor Apple has confirmed this deal.

If true, it could mean a cheaper, lighter, skip-proof iPod.

SigmaTel is a manufacturer of MP3 controller, Audio decoder, and USB mass-storage chips. They are not providing the flash storage itself, but the chips that would most likely enable a new iPod to use it.