DRAMeXchange: Strong smartphone momentum helps to stimulate NAND Flash demand

Due to the impact from European financial issue, sloppy end demand and higher inventory level, 2H10 shipment from IT and consumer electronics has been adjusted down. However, mobile handset vendors has aggressively digest the inventory and launch smartphone, handset shipment will lead any other consumer electronics. According to DRAMeXchange, 2010 handset shipment will grow 13% YoY to around 130M units while smartphone indicate stronger momentum with 38% YoY shipment growth and 18.5% penetration rate. In 2H10 mobile vendors such as Nokia, Samsung and HTC will launch more smartphone with Android 2.2 platform design. Also, PC vendors such as HP, Acer and Asus will introduce smartphone to leverage with the smartphone growth. DRAMeXchange forecast smartphone penetration will exceed 20% in 2010.

NAND Flash memory application such as MCP and embedded eMMC, POP indicate the sharply growth with the hot sales of smartphone. iPhone, with the embedded NAND Flash design, has also pushed other vendors to imitate the same concept design. Featuring with dedicate outlook design, multi-function and powerful application processor, eMMC is expected to turn to the spotlight in 2011. According to DRAMeXchange, NAND Flash consumption of mobile handset is expected to exceed 40% in 2011 and lead any other applications. That is, we expect the future NAND Flash demand focus will be shifted to system products from memory card and UFD. The diversified system product will help to stimulate the NAND Flash consumption and lower the risk on individual products.