Hynix Micron Intel deliver flashy performances

Hynix, Micron, Intel deliver flashy performances

Q3 NAND Flash market sees Samsung lose share; industry sales expand robustly during period

Thursday, December 06, 2007

Hot flash
The NAND flash market enjoyed strong demand growth in the third quarter, contrasting markedly with the weak performance in the DRAM segment. Global NAND flash revenue in the third quarter rose to $4.2 billion, up 37 percent from $3 billion during the same period in 2006. This was very close to iSuppli’s forecast of $4.16 billion in revenue in the third quarter.

Megabyte unit shipments rose by 31 percent, while the per-megabyte Average Selling Price (ASP) increased by 5 percent compared to the second quarter. This marked the second consecutive quarter of price increases for NAND flash.

In contrast, global DRAM revenue decreased by 14 percent in the third quarter compared to the same period in 2006. “The NAND market in the third quarter enjoyed a combination of strong seasonal consumer–electronics demand from products including Apple’s iPod line and high supply growth,” Kim said.

Flash in the pan
However, the NAND market’s growth streak is coming to an end in the fourth quarter. iSuppli expects the NAND flash megabyte ASP to decline by 18 percent this quarter while megabyte unit shipments will increase by 37 percent.

The two quarter consecutive price surges will turn into consecutive price drops in the fourth quarter and in the first quarter of 2008 due to increased production capacity, which will increase availability and drive down pricing.

With iSuppli recently having downgraded its rating of near-term market conditions for NAND makers to “negative” this month, suppliers need to be wary of declining prices during the slow periods of the year: the fourth and first quarters.

©CIOL Bureau

<<PREVIOUS

Would you like to Comment on this Article?