Tablet PC and Smartphone will consume more than 50% NAND Flash in 2011

Tablet PC and Smartphone will consume more than 50% NAND Flash in 2011

According to DRAMeXchange, a research department of Trendforce, Apple launched iPad2 on March 2nd, causing distraction in the tablet PC industry and posted a strong entry barrier to the late comers. In the previous six months, tablet PCs powered with Android 3.0 honeycomb were heard all over the news, with manufactures announcing the launch of the new android tablet one after another. This momentum has accelerated the development of peripheral hardware and software. Mobile device application market first led by Apple’s app store has now created an ecosystem of its own. For example, with Android market and OVI market following behind is trying to capture some of this emerging market and attract customers to further profitability. On the other hand, the improved hardware like the dual video conferencing cameras, dual-core processors and gyroscope offer to further enhance user experience. According to DRAMeXchange, non-iPad tablets will be forced to re-position on both the strategy and pricing in order to take up the strong price-competitive competition posted by iPad2. Tablet PC shipment will likely increase in 2H11, DRAMeXchange expects the 2011 tablet shipment will be up to 52 million units with Apple’s iPad taking up more than 75% of the total market.

Influenced by the rocketing sale of iPhone and full-fledged mobile internet infrastructure, the Smartphone industry has shown an extraordinary growth started from 2010. According to DRAMeXchange, with the maturing of the android operating system and the integrity of the application software market, more handset makers plan to develop entry-level and low-end Smartphone. DRAMeXchange expects Smartphone penetration rate to surpass over 30% in 2011. Meanwhile a strong Smartphone demand will gradually increase the NAND Flash consumption. The emerging eMMC (Embedded MultiMediaCard) will help handset makers to speed up production and the broadened eMMC acceptance will have a positive effect on the NAND Flash demand.

According to DRAMeXchange’s survey from various channels, the strong demand of MCP (multi-chip package) and eMMC in handsets accounts for approximately 43% of the total NAND Flash consumption. Simultaneously, demand in tablet PC will consume another 10% of NAND Flash increased from the previously 5% in 2010. Mobile device all together accounts for more than 50% of total NAND Flash output, DRAMeXchange expects the promising Smartphone and tablet PC demand will keep the NAND Flash industry robust.