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?
2/22/2008 4:47:59 AM
Would love to know where that quote was from.
It pretty much sums up the state of play in the UK.
We've had 10 years of Blair/Brown's NuLabour government and their benefits packages paid directly into the electorates bank accounts have all but destroyed the democratic process in many areas of the UK, if not the country as a whole.
NuLabour can do pretty much whatever they like and lots of the electorate are too financially dependent on the benefits they receive to dare to vote them out of power.
Luckly it would seem that, as the economy worsens, this policy is becoming harder for them to finance and the rest of the UK are getting sick of the ridiculous stealth taxs/charges and fines that they are being forced to pay just to keep Gordon and his cronies in power.
Not sure what that has to do with Apple and Memory chips :-s
I think I need to sit down quietly for a minute :)
RE: Rotten ecomomy?
2/22/2008 5:33:00 AM
going off topic seems to be in fashion around here anyways.
on your point, and against the quote in question, the australian public voted in a labor party government that promised slightly less public spending that the liberal/national coalition party, ending over a decade of liberal government.
during this time, the gov. had a pretty decent budget surplus to play with yet we still voted for less spending?
"I'm an Internet expert too. It's all right to wire the industrial zone only, but there are many problems if other regions of the North are wired." -- North Korean Supreme Commander Kim Jong-il
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
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
Report: AT&T Eyeing $40B DirecTV Purchase
May 1, 2014, 8:00 AM
WebOS Class Action Settlement Costs HP $57 Million
April 1, 2014, 10:22 AM
Most Popular Articles
Google Steps up Snub of Adobe Flash, Auto-Converting Flash Ads to HTML5
February 25, 2015, 6:16 PM
FCC Bans Data Discrimination, Defies Comcast, Adopting Net Neutrality Regulation
February 26, 2015, 4:03 PM
Windows 10 Adds USB 3.1 for Dual-Role Peripherals, External Display Support
February 27, 2015, 11:39 AM
StarDock Unveils Start10 Start Menu Replacement for Windows 10
February 25, 2015, 11:24 AM
Google Preps Pixel 2 ChromeBook, New X Server Replacement "Freon"
February 24, 2015, 11:12 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 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information