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 10:14:15 PM
Oh, brother, here we go again with nominal values adjusted with worthless government statistics. Then end is particularly telling "Keep the faith. Now is a great time to buy." That should just jump out and scream at you. Luskin was calling the bottom last fall and telling people to buy with both fists, and you would have lost big if you did. But I'm guessing you don't understand the stock market enough to see the red flag.
There, now you have a small crash course. Schiff always has been an excellent orator for the average joe.
The nominal GDP rate of growth is gotten by assuming annualized inflation that is grossly, grossly below what it actually is. You need only go outside every once in a while to see that reality is far outpacing this number. Commodity prices are simply jetpacking right now to all-time highs with no signs of slowing down. What was oil today? $100 a barrel, with many predicting $150? If you read any articles that are critical of the CPI figures and how they are calculated and how they have changed over the years, you will see that the federal reserve is blatantly trying to mask inflation so that the masses will glaze over nominally-obsessed corporate cheerleader articles such as the one you just referenced. Because the borrow and spend system is largely dependent on the consumer and investor confidence to prop it up.
"Death Is Very Likely The Single Best Invention Of Life" -- Steve Jobs
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
WebOS Class Action Settlement Costs HP $57 Million
April 1, 2014, 10:22 AM
IBM Workers Strike Over Terms of Deal That Will Have Them Working for Lenovo
March 6, 2014, 9:29 AM
Google Picking Up Artificial Intelligence Company "DeepMind" for $400 Million
January 27, 2014, 9:25 AM
Quick Note: Qualcomm Grabs up Palm, IPAQ, and Bitfone Patent Portfolio from HP
January 24, 2014, 9:18 AM
Verizon Buys Intel Media OnCue Cloud TV assets
January 21, 2014, 10:26 AM
Google's First Asian Data Centers Now Operational
December 11, 2013, 8:50 AM
Most Popular Articles
Cities to Carpoolers: Sharing Your Car is Illegal, We Will Seize Your Cars
April 4, 2014, 9:17 PM
A-10 Warthog May Live to Fight Another Day with Support from Lawmakers
April 14, 2014, 9:41 AM
EFF: NSA May Have Used IRC Botnets to Exploit Heartbleed for Last Two Years
April 14, 2014, 4:43 PM
Quick Note: Toyota Attempts to Erase “Boring” Image with ’15 Camry SE Hybrid
April 16, 2014, 11:36 AM
A Bug's Life: Female Cave Bugs Have Penises, Penetrate Males for Three Days
April 17, 2014, 7:20 PM
Latest Blog Posts
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information