NAND flash revenue cut

BEARD STROKERS and people in the know have has slashed expected revenue growth for the NAND flash memory market in 2008.

Isuppli has predicted that, due to the worsening consumer spending environment, global NAND flash memory revenue is expected to rise to $15.2 billion in 2008, compared to its previous forecast of $17.9 billion. Previously analysts claimed that there would be a 27 per cent growth.

Nam Hyung Kim, Director and Chief Analyst of memory ICs/storage systems for Isuppli said the reason that demand will fall is that consumers will not be interested in spending cash on consumer electronics such as MP3 players, USB flash drives and digital cameras.

He is predicting that spending growth on these items will slow in 2008 compared to 2007 due to the US subprime mortgage crisis and its spin-on effects on worldwide consumers and economies.

The price of NAND flash memory ASPs fell by 36 per cent in the first quarter and in the second quarter it will fall by 13 percent according to the predictions. It seems Isuppli is banking on things stabilising in the middle of the year.

For the last two years NAND flash memory ASPs have dropped by approximately 60 percent. µ

L'Inq
Fabtech