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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 DRAM production 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.


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RE: Three Words
By AlphaVirus on 2/21/2008 3:36:52 PM , Rating: 2
So the main problem we have are the larger corporations going to China/India/Indonesia/etc to get cheap labor when they can use what they have on their own soil.

You are totally right though, people are living above their means and when they can not afford something with their own money they are quick to get it with some form of credit (debt).

Also Unemployment and Welfare are a bit draining on the economy as well, because it causes people to not want to work or just "live off the government".

I am not pointing fingers at any single group because we all have a piece of the pie to deal with.


RE: Three Words
By FITCamaro on 2/21/08, Rating: 0
RE: Three Words
By Mitch101 on 2/21/2008 5:42:28 PM , Rating: 2
Unless your an American Indian you are an Immigrant or related to an Immigrant.


RE: Three Words
By ebakke on 2/21/2008 6:37:57 PM , Rating: 2
You don't need to capitalize all Nouns in the Sentence.


RE: Three Words
By Mitch101 on 2/22/2008 9:57:49 AM , Rating: 2
Thankyou for pointing that out but the article/comment is not about literacy or my poor American education.

If you want to grade people on their literacy become a teacher. From my above capitalizing of nouns its obvious we need good teachers in our education system.


RE: Three Words
By ebakke on 2/22/2008 2:19:13 PM , Rating: 2
And motivated students.


RE: Three Words
By Mitch101 on 2/22/2008 2:52:21 PM , Rating: 2
Not only motivated students but respectful. I read an article from a 70 year old teacher who taught in the 50's and 60's. She laughs about how everyone says their kids don't get enough attention and that their are too many students per teacher in the schools today. She found this funny because she at one point taught over 50 students in a classroom. She stated students back then were much more respectable toward their teachers and dare I say they were more disciplined than today's students. Today a lot of kids have no respect and would mouth off at their teachers without feeling any remorse or get any form of punishment from their parents for doing so. Thus problem students of today can bring down an entire class. Teachers need more authority today and parents need to get their kids in line.

Too many parents trying to be their kids friends instead of their parents.


RE: Three Words
By sweetsauce on 2/21/2008 6:31:14 PM , Rating: 2
Hmmm i believe it was McCain that wanted amnesty was it not? So easy to blame everything on democrats isn't it. When its not democrats, its the liberal media. I think you should blame them next.


RE: Three Words
By Ringold on 2/21/2008 7:21:10 PM , Rating: 2
The amnesty bill didn't pass because of a few things:

1. American's, mostly pissed off conservatives, swarmed congressional offices and staged large protests. Orlando's House rep's office was basically under siege for a week.

2. Republican's thought the amnesty bill was too easy on illegals.

3. Democrat's thought it lacked compassion (it would've ended the practice of letting whole families flood in if one managed to get in, instead prioritizing people with job skills for entry to the country) and in general was too hard on them.

McCain isn't perfect, but I'll take a middle of the road position over a far-left one any day. At least with him there is hope of pushing him further away from the amnesty bill. Taking an Obama or Clinton and pushing them clear to the other side of the issue would be near impossible.


RE: Three Words
By BansheeX on 2/21/2008 4:07:03 PM , Rating: 2
quote:
So the main problem we have are the larger corporations going to China/India/Indonesia/etc to get cheap labor when they can use what they have on their own soil.


But that's not the fault of companies, that's the fault of government overregulation and Keynsian economics. There would be far less incentive for companies to go overseas if labor here was not made so much more expensive by crappy economic policy, managed trade, and disadvantageous legislation like Sarbanes-Oxley. And yet what do the ignorant masses call for more of? More government spending! More regulations on the free market! More redistribution of wealth to stop the greedy capitalists! And predictably, things dont' get better, they get worse, and then guess what they call for again?


RE: Three Words
By ebakke on 2/21/2008 6:39:49 PM , Rating: 2
Enough of your logic and reason!

More government spending! More regulations on the free market! More redistribution of wealth to stop the greedy capitalists!


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