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Electronics Production | November 29, 2004

Flash revenue declines 4%

Worldwide flash memory revenue declined to $3.99 billion in the third quarter of 2004, down 4 percent from $4.2 billion in the second quarter, according to the latest preliminary estimate from iSuppli Corp.
Increasingly intense competition among flash suppliers, combined with an oversupply of parts in the market, caused prices to decline during the quarter, bringing overall market revenue down. The decline marked the first sequential quarterly decrease in overall flash sales since the first quarter of 2003.

The flash market has achieved enormous sales growth this year, especially in the first half of 2004, led by strong NAND growth. However, overall memory market conditions this quarter are appearing more negative as price competition has intensified. Growth in the overall memory market will stall in 2005 as higher availability of parts depresses pricing, iSuppli predicts.

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