14 DAY TRIAL // It seems that, much like what seems to be happening on the DRAM market, the segment for NAND Flash storage is suffering from the same acute price crisis and will keep doing so for months to come.
For those in need of a reminder, DRAM prices are dropping, have been dropping for a time and will keep dropping until they hit the bottom in Q1, 2011.
While this means consumers could get cheaper modules, it also suggests that demand is just too weak, weak enough that it is giving makers and vendors of such product certain headaches.
Basically, in the midst of growing inventories, demand has been too slow to make up for the extra supply..
Now, it is revealed that the NAND Flash sector is going through much the same type of trials, only it will take longer to recover.
Basically, ASPs (average selling prices) will keep falling, for about 35% during 2011, even though projected sales will supposedly grow by 16% on year.
Worldwide NAND Flash bit supply, Digitmes reports, will total 9.326 billion 16Gb-equivalent wafers in 2011, according to DRAMeXchange.
Likewise, the overall bit growth will reach 78.3% in 2011, as chip makers will increase their output of 30nm and 20nm-class processes.
One of the main factors behind these developments is, according to the report, the tablet market, though this is hardly a surprise.
Slates use NAND storage exclusively and are believed to be on track to touching a figure of 50 million units in 2011, up from the 'mere' 15 million in 2010.
It is also believed that smartphones and purchases for the Lunar New year holidays will allow the first quarter of 2011 to go by without any major seasonal impact.
Still, average selling prices are only expected to start seriously recovering during the second half of next year.