Flash memory prices in freefall

Posted on 5 Nov 2008 at 10:04

Apple is set to benefit from falling prices for the NAND flash memory that it uses in the iPhone and nearly all its iPod models.

DRAMeXchange’s latest survey of NAND prices shows that average prices fell by 30% in the third quarter of the year, having fallen by 15% in the previous three months.

According to research firm iSuppli, the price will continue to fall, dropping by 62% this year and by 50% in 2009.

“Unlike other memories, which depend more on non-consumer/non-retail products, NAND flash is bearing the brunt of the challenging retail conditions,” said Nam Hyung Kim, chief analyst at iSuppli. "Combined with uncertain global economic conditions and a lack of killer applications, the NAND flash memory business is facing a triple whammy.”

Apple meanwhile has seen iPhone sales soar, with 6.89 million sold in the last quarter alone, while iPod sales continue to rise, despite competition from the phone. Falling NAND prices would enable it to cut prices and more easily weather the economic climate.

But the real beneficiaries of falling prices, says iSuppli, will be consumers.

“All in all, the only winners in this market are and will be consumers who have access to fire-sale prices for these flash storage devices due to those issues.”

Author: Simon Aughton

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