As flash prices
continue to drop, we're seeing increased usage of the technology here in the region.
As flash prices
continue to fall the benefits of all-silicon storage become compelling to IT departments challenged with the increase in performance-related storage problems.
In the meantime, AMD said it was seeing flash prices
firming up, but "not rocketing up".
On Wednesday, a major chip company said that DRAM and NAND Flash prices
fell 34% and 24%, respectively, during the quarter.
Will higher NAND Flash prices
be a positive or a negative for these SSD companies?
SanDisk: Does a new data point about NAND Flash manufacturers from Applied Materials' earnings report suggest improving NAND flash prices
and potential upside for SanDisk?
The flash memory business is a cyclical growth market, which is characterized by periods of strong growth and profitability such as we saw between 2002 and 2007, punctuated by periods of oversupply and declining flash prices
like those we are experiencing today.
While we did see a tough quarter due to the economic conditions and the effect on NAND flash prices
, we don't expect this trend to continue.
My contention was that even though consumer demands and NAND Flash prices
were weak, the low NAND prices would accelerate demand from emerging NAND markets - primarily those that will replace hard disk drives with NAND Flash.
Are OCZ, SMART and STEC poised to see explosive growth as NAND Flash prices
decrease and solid state storage drives become the mainstream storage technology?
As we see flash prices
continue to decrease, the significant advantages that SSDs provide over traditional rotational disk solutions will be justified by the consumer.
The steep decline in NAND flash prices
is making it competitive with hard disk drives for adoption in the POS industry, while its higher reliability makes it even more attractive over conventional spinning magnetic media in the total cost of ownership (TCO) analysis.