Rotten Economy Promises Rough Year For Apple, NAND and DRAM
February 21, 2008 1:16 PM
comment(s) - last by
After a rough fourth quarter, NAND manufacturers hoped to get a break and instead they got slammed by more bad news, this time from Apple
Apple Inc. last year spent $1.2B USD on NAND flash memory for its consumer electronics devices. Most of Apple's
wildly popular iPod family
sports the memory -- the
iPod Shuffle, the iPod Nano, and the iPod Touches
all use it for storage. The iPhone also uses NAND, further increasing Apple's
already sizable NAND appetite
. Thus Apple's decision hold a significant sway on NAND's fate.
Perhaps predicting slow iPod/iPhone growth, Apple
dramatically scaled back its NAND predictions for 2008
, sending NAND manufacturers into a panic. The news, which also may signal bad news for Apple, may be a reflection of the sagging of the U.S. economy, burdened by
the U.S. sub-prime mortgage crisis
, which has led many analysts to predict a rather dire consumer market for the year. Apple
continues to cut prices
in hopes of keeping sales alive
, but the outlook is still far from rosy.
iSuppli announced the shifting estimate from Apple on Wednesday, stating, "
Apple Inc. has slashed its 2008 NAND order forecast significantly and has informed suppliers that its demand growth will slow in 2008 compared to 2007."
Before iSuppli had predicted a 32% increase in NAND orders for 2008 from Apple. The change caused iSuppli to drop its estimate for global NAND growth from 27 percent to "single digit" percentage growth from last year's $13.9B USD market. According to iSuppli in Q1 '08 NAND manufacturers will also invest a
20 percent increase in capital spending
, which will increase capacity and lower prices for the consumer, but add further to the suppliers financial woes.
The year of 2007 held mixed results for NAND suppliers, but still may be looked back fondly upon in comparison to 2008. In 2007 NAND overall saw 12.5 percent growth. However in Q3 and Q4 of 2007, six of the top eight NAND producers saw sequential declines in revenue. Only
Micron and Intel
escaped this trend.
Samsung and Toshiba
, who hold the number one and two spots respectively, were among the losers, but remain on top of the struggling market.
Some top tier NAND suppliers vested in
as well will get doubly hit, as DRAM is supposed to have an extremely poor year as well, experiencing poor growth of only 4 percent. While single digit growth may seem acceptable to some, the constant demands for increased capacity at lower prices means that single digit growth typically equates to significant revenue losses.
This article is over a month old, voting and posting comments is disabled
RE: Rotten ecomomy?
2/21/2008 3:09:24 PM
The billions written off by the sub prime lending/lending/banking industry will have a major effect of the economy. Many people overextended themselves with get rich quick ideas of a housing boom trying to turn over the house in 2 years before their sub prime reset with no way housing could ever collapse and it has in many places.
My old house in NJ is worth $56,000 less than what I sold it for. There have already been a lot of layoff's but its going to get worse as they cut staff to make up for losses/poor judgement/risky loans as more sub primes reset.
What is extremely poor is the feds pretend that adjusting the rates will save the country from a recession when the real issues are Increased Taxes, Insurance, and fuel costs. Fuel costs alone effect everything we buy.
In simple terms everything is more expensive and people have less money and their will be less jobs and companies will pay less or move the jobs to places where they can pay less. This is why places like NC/TX/TN/OH are experiencing rapid growth because they can pay someone a lot less than hiring someone in the NY/CA area to do the same job.
Recently I had the opportunity to hire 6 blackberry admins. I got them in Texas for $300,000 a year less than NY. We also hired several Exchange admins in Charlotte for a large sum less about a half mil less than doing it out of our NY office.
Before anyone starts saying Charlotte? Hillbilly's who use Winders and live in trailers. Realize that Microsoft has a call center out of Charlotte. Most are former Microsoft call center employee's.
Big City Big money days are limited.
Because it hasn't hit you or your field yet doesn't mean it wont effect you.
RE: Rotten ecomomy?
2/22/2008 3:49:18 PM
Why was this voted down? WTF? Good post, would rate up if I could.
"Well, there may be a reason why they call them 'Mac' trucks! Windows machines will not be trucks." -- Microsoft CEO Steve Ballmer
Apple Trims Price of 1GB iPod shuffle, Intros 2GB Model
February 19, 2008, 8:52 AM
Report: Apple iPhone, iPod touch to Receive Price Cuts
February 18, 2008, 2:50 PM
SanDisk Launches 43nm NAND Production, 3-bit-per-cell NAND
February 6, 2008, 7:00 PM
Apple Bumps Storage Capacity on iPhone, iPod touch
February 5, 2008, 9:54 AM
Intel, Micron Announce NAND Flash Memory at 5X Speeds
February 1, 2008, 3:25 PM
Google's Gleaming Glass HQ Gets Mountain View Snub, LinkedIn Gets the Love
May 7, 2015, 6:58 AM
Tech's Tax Day Fortunate Few: Qualcomm, Xerox, GE, et al. Pay Little or No Taxes
April 15, 2015, 11:30 AM
LinkNYC Terminals to Blanket New York City With Free WiFi, Free Calls, and Ads
November 17, 2014, 6:50 PM
Microsoft is Open-Sourcing Most of .NET, Adding OS X and Linux Support
November 12, 2014, 8:27 PM
Home Depot Lost 53 Million Emails, Blames Windows, Buys Execs New Macs
November 9, 2014, 5:00 PM
Former NSA Lawyer: If Google, Apple Encrypt User Data, They’ll Wither on the Vine Like Blackberry
November 6, 2014, 12:15 PM
Most Popular Articles
Smart Security Cameras: 5 Good Choices For Any Budget
July 25, 2016, 7:13 PM
2017 Porsche Panamera: I’ll Take Three of These.
July 24, 2016, 6:44 PM
Free Windows 10 offer ends July 29th, 2016: 10 Reasons to Upgrade Immediately
July 22, 2016, 9:19 PM
Top 5 Smart Watches
July 21, 2016, 11:48 PM
5 Excellent Cable Modems: Buy Your Own and Avoid Rental Fees
July 28, 2016, 8:44 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information