NAND flash memory suppliers have been cheered by a rebound in Average Selling Prices (ASPs) during the fi rst two quarters of the year, giving them hope after a disastrous 2008.
Eager to return to profitability, these suppliers in 2008 cut capacity to reflect market weak demand. Since that time, NAND flash component pricing has seen an 11 percent increase in the first quarter and an estimated 28 percent rise in the second quarter, according to iSuppli Corp.
While this is a welcome sign to flash memory suppliers, it may have a negative impact on the adoption of Solid State Drives (SSDs)—of which 90 percent is flash memory components—in the mainstream PC market.
Fall of the SSD Netbook
During the uncertain times facing the global electronics marketplace, PC manufacturers have looked to lower-priced netbook offerings to help drive sales. This, however, further exacerbates the problem for SSD manufacturers as even a 32Gbyte Multilevel Cell (MLC) SSD would significantly add to the final price of a netbook PC.
For example, a 10-inch-display netbook equipped with an SSD is close to the same price as a much-better equipped notebook PC offering a faster microprocessor and more DRAM.
With one fell swoop, the once-promising market for SSD netbooks now has faded into oblivion.
The Bad News Doesn’t Stop There
Other high-end notebook suppliers—namely Lenovo and Dell—are facing tougher-than-expected challenges during the weak economy. iSuppli sees the consumption in the high-end notebook market falling below expectations from PC OEMs and SSD suppliers alike. Clearly, it is increasingly difficult to justify the seemingly compelling justifications of faster PC performance and longer battery life when facing battered corporate budgets eviscerated by a raft of cost-reduction measures.
So despite expected progress, SSD remains a technology niche item for gaming enthusiasts while market-savvy shoppers are waiting for a better deal—thus stalling the adoption of the technology.
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