Tablet NAND Flash Demand to Triple (AAPL, MU)

September 20, 2010 5:14 PM EDT
The massive success of Apple Inc.’s (NASDAQ: AAPL) iPad tablet computer has caused research firm iSuppli Corp. to predict that the use of NAND flash memory, like that made by Micron Technologies Inc. (NYSE: MU), in tablets tripling next year.

The firm is forecasting that shipments for NAND flash for tablet devices will reach 1.l7 billion GB next year, up from 428 million GB in 2010. The shipments are predicted by iSuppli to climb steadily over the next several year, reaching 8.8 billion by 2014.

“Tablets have stolen some cachet from netbooks,” said Michael Yang, senior analyst for memory and storage at iSuppli. “And while the tablet segment suffers from some of the same weaknesses as netbooks, devices like the iPad have wowed consumers with their responsiveness and media interaction—due in part to the use of NAND flash for data storage, instead of a traditional hard disk drive.”

Rival technology companies are gearing up to get a piece of the tablet computer market that Apple has created. New devices are on tap to include the Android or Chrome operating system from Google Inc. (NASDAQ: GOOG).

The new devices entering the market could create price competition among companies, pushing up sales moving forward.

“As more consumers switch from netbooks to tablets, NAND demand is expected to keep rising,” the iSuppli report stated.

The report said that the average density for NAND Flash for tablets will be 28GB this year, and by 2014 the average density will jump to 65GB.

Shares of Apple closed Monday up 2.85 percent to $283.23, while the stock hit an all-time high during intraday trade.


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