Global NAND flash prices forecast to fall 35% in 2011

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Global NAND flash sales are projected to reach $21.5billion in 2011, a year on year increase of 16% on year, according to market analyst DRAMeXchange. However, the firm adds that ASPs will decline 35% during the same period.

DRAMeXchange reports that the launch of new smartphones and tablet pcs will help reduce the seasonal impact in the first quarter of 2011. In the second half of the year, it forecasts the NAND flash market will move towards a healthier state of balance amid a seasonal demand pickup, while price drops will become moderate during the period. In addition to smartphones, tablet pcs will also be the big demand driver for NAND in 2011, according to DRAMeXchange. The firm forecasts that global tablet shipments will top 50million units, up from 15m in 2010. On the supply side, due to chipmakers' output growth using 30 and 20nm class processes, DRAMeXchange projects the industry's overall bit growth will reach 78.3% in 2011. Worldwide NAND flash bit supply will total 9.326bn 16Gb equivalent wafers in 2011, versus the 9.283bn units expected in demand, according to DRAMeXchange.