News

posted on 08 April 2008 11:42

The iSuppli organisation is slashing its 2008 NAND flash growth forecast for 2008 from 27 percent to 9 percent, with total 2008 revenue now expected to be $15.2 billion instead of $17.9 billion, a $2.7 billion difference.

Nikkei Electronics Asia reports Nam Hyung Kim, an iSuppli's director and chief analyst, as saying: "The major factor behind the diminished outlook is weakening consumer spending." This is due to the US sub-prime crisis and resulting credit restrictions.

NAND flash is used in intelligent consumer devices - MP3 players, digital cameras, thumb drives, etc - and consumers are cutting back on their purchases. That means the device manufacturers will reduce their NAND flash purchases.

Hynix, the number 3 flash supplier, has said it will lower its flash output levels due to weakening demand. Intel has also said flash prices are weakening. Thirdly Apple is not buying so much flash this year as it did in 2007.

SanDisk was the largest flash buyer in the world last year and iSuppli has also reduced its estimate of SanDisk Flash purchases this year from a 33 percent rise compared to 2007 to 8.4 percent. Sony, the number 2 purchaser, has also had its estimated purchase growth reduced, from16 percent in 2008 to 6.8 percent.

^{[Paul Roberts, news editor.]}