2013-11-17

Business, General NAND bit shipment growth slowing

Business, General NAND bit shipment growth slowing

2013/11/15

According to IHS, the amount of NAND in handsets and tablets is not growing and the reason for this could be because people are increasingly using The Cloud for storage.

This is despite the fact that NAND looks like having its best ever year with $24 billion worth due to be shipped this year.

In terms of bits NAND grew 9% in Q2, 8% in Q3 and will grow only 5% in Q4. In Q4 2012 it grew 16%.

“The fast-growing season for flash memory appears to be running out of momentum as density growth levels off in many of the products that are leading users of NAND,” says IHS’ Ryan Chien, “moreover, few upcoming devices are expected to increase their NAND options, further dampening growth in the short term. Streaming media options and free cloud storage are diminishing the prospects for increased NAND usage in smartphones. This is true for all three major mobile operating systems—Apple’s iOS, Google’s Android and Microsoft’s Windows Phone. With less need to store data in local devices, the requirement for greater storage is reduced.”

Another reason for slower NAND growth is that NAND use is limited in low-end smartphones that make up the fastest-growing part of the smartphone market. By keeping NAND use down, low-end smartphones can more easily control costs and maintain affordability. The latest flagship handsets from Apple, Samsung and Sony have not added larger density options compared to predecessor models.

Furthermore, consumer interest in recent years has been lukewarm in several NAND-heavy device categories like game consoles, PCs, e-readers and USB drives. And in media tablets, the rapid transition to lower-cost 7- and 8-inch sizes is squeezing product price points—and, therefore, flash densities.

Meanwhile NAND prices have risen as the NAND manufacturing industry consolidates. The IHS NAND price index has risen nearly 10 percent since the beginning of September.



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