DRAMeXchange reports 2Q08 NAND Flash QoQ declines 9%
Taipei, August 5, 2008 --- According to DRAMeXchange, discouraged by a consistent weak demand for consumer electronics and plunge of consumer confidence index, sales of global branded NAND Flash vendors declined 9.0% QoQ at US$2.90bn in 2Q08. Both ASP and sales volume were on the downhill trend in the quarter. A fundamental demand weakness has also aggravated over supply condition, as evident in the divergent trend of QoQ bit growth (+10%) and ASP (-15%).
Table 1. Sales of branded NAND Flash vendors, 2Q08
| Rank | Company | 2Q08 sales (US$m) | 2Q08 Market Share (%) | 2Q08 Sales QoQ Growth (%) | 1Q08 Sales (US$m) | 1Q08 Market Share (%) |
| 1 | Samsung | 1143 | 39.4% | -11.1% | 1285 | 40.3% |
| 2 | Toshiba | 777 | 26.8% | -9.1% | 855 | 26.8% |
| 3 | Hynix | 495 | 17.0% | -13.0% | 569 | 17.8% |
| 4 | Micron | 244 | 8.4% | 9.9% | 222 | 7.0% |
| 5 | Intel | 175 | 6.0% | -2.8% | 180 | 5.6% |
| 6 | Numonyx | 70 | 2.4% | -12.5% | 80 | 2.5% |
| | Total | 2904 | | -9.0% | 3191 | |
*Note: Renesas/PSC have gradually phased out the branded sales of their AG-AND Flash since 2Q08.
*Note: 2Q Average Exchange Rate
Source: DRAMeXchange, August, 2008
Samsung ranked as the largest NAND Flash vendor with a sales amount of US$1.14bn, translating to a market share of 39.4%. Toshiba ranked as the second-largest vendor at a sales amount of US$770mn, translating to a market share of 26.8%. Hynix followed as the third on a sales amount of US$495mn with market share of 17%. And Micron along with Intel took the fourth and fifth place, respectively, with a market share of 8.4% and 6.0%.
Samsung has exposed to a consistent weak ASP pressure as seasonal slow impact intensified. Sales growth of end products such as MP3 player and memory card eroded considerably, down from 1Q’s 48% to 2Q’s 17%. Also, a relatively high inventory level at channels has also weighed on ASP, as evident in a QoQ sales drop of 11.1 %.
Toshiba’s performance has also dampened by a sluggish demand for consumer electronics and exchange loss from Japanese yen. Despite sales volume grew, ASP trend lagged behind affected overall sales. 2Q sales have declined by 9.1% QoQ.
Being the third-largest NAND Flash vendor, Hynix has seen its bit growth dropped by 15% QoQ after executing its capacity trim. However, Hynix still managed to have its market share maintained at 17%. 2Q sales, meanwhile, have dropped by 13% QoQ.
DRAMeXchange analysts indicate that Micron and Intel are the two vendors that saw their output steadily growing in 2Q, despite sales either posted a mild growth (Micron +9.9%) or decline (Intel -2.8%) on a fundamental demand weakness and downward-trending ASP. Numonyx has also seen its sales down by 12.5% QoQ at US$70mn, translating to a market share of 2.4%.
