Flash prices crash
February 20th 2008
Citing iSuppli data, EETimes reports that Apple has slashed its 2008 NAND order forecast "and has informed suppliers that its demand growth will slow in 2008 compared to 2007."
Apple was the third-largest OEM NAND flash buyer in 2007, with purchases of $1.2 billion, representing 13.1 percent of the global market, according to iSuppli. Before word of Apple's warning, iSuppli had predicted the company's NAND flash purchases would rise by 32.2 percent this year.
The flip side of the equation--supply--is expected to increase 20 percent this year, which "...will cause prices to decrease. iSuppli believes that NAND prices already are below suppliers' fully loaded costs.''
Hopefully, this meltdown will lead to significantly reduced consumer prices, as well. Specifically, it could help transform SSD storage from an expensive curiosity into a mass-market product.
Also, the iPhone and iPod touch could be transformed by falling Flash prices, as well--it has been rumored that Apple will cut prices soon.
On Tuesday, Apple significantly boosted iPod shuffle storage while reducing prices.
Editor's note: Apple needs to get out in front of this curve and use this as an opportunity to drive out the competition...
What's your take?
