A soft economy means weak consumer spending, which means less demand for “NAND”-type Flash memory, the kind of memory used in many of Apple’s (AAPL) iPods, USB flash drives, and some digital cameras, according to a new report from research firm iSuppli.
The firm slashed its NAND memory growth projection by two thirds this morning: iSuppli expects global NAND flash memory revenue to reach $15.2 billion this year, representing 9% growth from last year, when it reached $13.9 billion. Previously, iSuppli had estimated the market would grow 27% this year to hit $17.9 billion.
Why the drop? One big reason: Lower spending growth from big memory buyers like Apple. iSuppli projects Apple’s NAND flash spending will increase 12% this year to $1.4 billion, up from $1.2 billion last year. Previously, the firm had expected Apple’s spending to jump 32% this year to $1.6 billion. Similarly, the firm predicts lower-than-expected spending growth from SanDisk (SNDK) and Sony (SNE).
Who gets burned here? Lower NAND flash spending is bad news for all of the big players, including Samsung, Toshiba, Hynix, and Intel (INTC), which has already warned about weakening memory prices, iSuppli says.
Business Insider Emails & Alerts
Site highlights each day to your inbox.