NAND sales down in Q1

In contrast with the weaker sales in NAND flash memories the NOR flash revenue rose six per cent and DRAM achieved a 16 per cent sales increase in Q2. The average selling price of NAND dropped 33 percent during the first quarter and that is more than iSuppli earlier predicted. The overall per-megabyte ASP for NAND appears to be on track for a nearly 60 per cent decrease for all of 2006, exceeding iSuppli's previous forecast of a 53 per cent decline for the year. "NAND ASP declines were due to a flood of supply on the market, as manufacturers ratcheted up production faster than demand grew," said Nam Hyung Kim, director and principal analyst for iSuppli. "On the other hand, the major increases in production allowed NAND flash revenue in the second quarter to increase by a healthy 21 per cent compared to the same period in 2005—so not all the news was bad for the NAND market," Kim added.