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ASP market falls deep, Samsung secures No. 1 spot

Posted: 15 May 2012 ?? ?Print Version ?Bookmark and Share

Keywords:NAND flash? memory market? ASP? storage devices?

According to TrendForce, 1Q12 NAND flash brand manufacturers' ASP fell significantly, by approximately 16 percent QoQ, and bit shipment growth was around 16 percent QoQ as well. The market analyst said the slow economy and lukewarm Chinese New Year retail sales contributed to the downturn in the ASP market.

Although a few tablet PC and smartphone clients saw a relatively stable OEM demand, the majority of system product clients and memory card and UFD channel market clients experienced weakened demand, which was impacted by the off-peak season effect and inventory digestion, TrendForce added.

Samsung retained its No. 1 spot in the 1Q12 sales ranking for branded NAND flash manufacturers. The company had $1.623 billion in revenues or 33.9 percent market share. Toshiba took second place with $1.574 billion, 32.9 percent of the market; and Micron came in third with $679 million, 14.2 percent of the market. Hynix was fourth at $550 million, 11.5 percent of the market; and Intel placed fifth with $365 million, 7.6 percent of the market.

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Source: DRAMeXchange, May 2012

In 1Q12, although Samsung increased the sales portion of system product clients to counteract weak memory card and UFD channel market demand and appreciation of the Korean won, 1Q12 bit shipment growth roughly stayed flat while ASP decreased by around 10 percent QoQ. Samsung's 1Q12 sales fell by 7.9 percent QoQ to $1.623 billion, and 1Q12 market share was 33.9 percent. As it will still be the off-peak season for the NAND flash market in 2Q12, makers will continue to consume leftover inventory. However, Samsung expects steady OEM orders from some smartphone and tablet PC system clients, although memory card and UFD channel market demand remains weak. In 2Q12, Samsung will continue to increase the sales ratio of system products such as eMMC, mSATA, and SSD, while decreasing the proportion of memory card and UFD channel market revenue. Samsung expects bit shipment growth will reach 20 percent QoQ in 2Q12. In 1Q12 Samsung's 27nm and 21nm products already accounted for over 75 percent of total outputSamsung will continue to raise the proportion of new 21nm process products in 2Q12.

Although market demand was not as expected in 1Q12 due to the off-peak season and slower recovery of global economy, steady orders from some system clients and strategic partners were enough to offset price decline. Thus, Toshiba's quarterly bit shipment volume showed significant growth, given the company's digestion efforts on excess inventory and depreciation of the Japanese Yen. The maker's 1Q12 revenue increased by 12.3 percent QoQ to $1.574 billion, and market share was 32.9 percent. In 1Q12 Toshiba's 24nm and 19nm products already accounted for the majority of total output. In 2Q12 Toshiba will continue increasing the output ratio of new 19nm process products to strengthen its cost competitiveness. The maker also plans to continue developing embedded products such as eMMC, mSATA, and SSD to increase the sales proportion from system product clients and meet growing demand from rising mobile devices such as smartphones, tablet PCs, and ultrabooks.

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