Just how low can the memory market go? Pretty freakin' low, according to DRAMeXchange, who revised its flash bit growth from 108 percent in September to 81 percent. By comparison, that number stood at 175 percent in 2006, or more than double what it currently is. DRAMeXchange blames the slowed growth rate on declining demand for electronic gadgets.
Despite the weakened demand, the market research firm estimates 1Gb flash shipments to reach 52 billion units, up significantly from 28 billion in 2008. But as competition continues to heat up in the memory market and push flash storage capacities to new heights, actual chip shipments are expected to decline as a result. Throw in an oversupply of flash memory and there's not much for memory makers to celebrate in 2009.
Also feeling the pinch are SSD sales. There's been a major push in 2008 towards maneuvering SSDs into the mainstream, but despite those efforts, sales have been lower than anticipated.
"The penetration rate of SSD in the low cost PC market will be lower than 10% in 2009,” DRAMeXchange stated. "The short term demand mainly comes from the industrial market and the outcome in the low cost PC market is actually lower than expected, which was due to price and reliability issues."
The upshot, at least for consumers, is that flash memory is dirt cheap, and will probably remain that way at least through the next few months.