Research firm iSuppli has cut its estimates for NAND flash memory growth in 2008 by two-thirds. Analysts previously expected a growth of 27% this year but now iSuppli revised to estimate to only 9%:
Global NAND flash memory revenues now are expected to rise to US$15.2 billion in 2008, up 9% from US$13.9 billion in 2007. iSuppli's previously forecast global NAND revenue would rise by 27% in 2008 to reach US$17.9 billion. The revised forecast lowers expected worldwide NAND revenue growth by two-thirds, 18 percentage points and US$4 billion.
"The major factor behind the diminished outlook is weakening consumer spending," said Nam Hyung Kim, director and chief analyst, memory ICs/storage systems for iSuppli. "NAND flash is used heavily in consumer-electronics applications – including MP3 players, USB flash drives and digital still cameras – which are driven by retail sales to consumers. Spending growth on these items is expected to slow in 2008 compared to 2007 due to the US subprime mortgage crisis and its collateral impact on worldwide consumers and economies. In light of this development, the world's largest buyers of NAND-type flash will slow their spending growth in 2008."