NOR’s fortunes rise, while NAND’s sink as tags fall
By Staff -- Purchasing, 9/21/2006 2:00:00 AM
Worldwide nor flash memory revenue increased 8% in the second quarter as price erosion eased and more higher density devices shipped, according to market researcher iSuppli.
“The second quarter traditionally is the slowest period of the year in the NOR market,” says Mark DeVoss, senior analyst, flash/SRAM/MCP for iSuppli. “However, second-quarter revenue this year amounted to $2.13 billion, up from $2.01 billion in the first quarter.
NOR flash revenue in the second quarter of 2006 was nearly 19% higher than during the same period in 2005. Unit shipments of NOR flash in the second quarter of 2006 were 10% higher than in the first quarter and up 25% compared to the second quarter of 2005.
NOR market revenues were boosted by a slowing in the rate of price erosion as prices fell 4% sequentially in the second quarter, compared to an 8% drop during the same period in 2005.
Also fueling the increase in revenue was an increase in demand for 64 megabit (Mb) devices which have higher price tags than lower density devices. Unit shipments of 64 Mb devices increased 139%, according to iSuppli.
Meanwhile, the NAND flash memory market declined nearly 16% because of slower demand and lower prices. Global NAND flash sales declined to $2.7 billion in the second quarter, down 15.7% from $3.24 billion in the first quarter.
The average price of a NAND flash chip dropped 33%. While unit shipments increased 25%, it was not enough to offset price erosion.
The good news for buyers is that NAND tags will continue to fall. The overall price per megabyte is on track to decline 60% for all of 2006. “NAND price declines were due to a flood of supply on the market, as manufacturers ratcheted up production faster than demand grew,” says Nam Hyung Kim, director and principal analyst for iSuppli.
The news isn’t all bad for NAND flash suppliers. Major increases in production resulted in flash revenue increasing 21% over the same period of 2005, says Kim.
Expect NAND flash shortage in 2010
10/07/2009NOR flash price erosion eases
10/18/2006NAND prices will drop 60% for the year
08/19/2008
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