Apple has confirmed its rumored $500 million acquisition of Israeli flash memory firm Anobit. Reports started circulating last month that the Cupertino company was interested in purchasing Anobit for its flash storage prowess. It was concluded that Apple was looking to become a major player in the flash storage industry.

Despite its new dual-core A5 processor, its much-improved 8-megapixel camera, and a wireless chip that allows the device to use both CDMA and GSM networks, Apple’s new iPhone 4S only costs the Cupertino company around $0.49 more than the iPhone 4.