Market research analyst iSuppli has slashed its forecast for global revenue
growth for NAND-type flash memory this year by about two-thirds.

Global NAND flash memory revenue is now expected to rise to $15.2bn (£7.7bn) in
2008, up 9 per cent from $13.9bn in 2007. The analyst's previous forecast
for 2008 global NAND revenue growth was 27 per cent.

“The major factor behind the diminished outlook is weakening consumer spending,” said Nam Hyung Kim, director and chief analyst, memory ICs/storage systems for iSuppli (pictured).

Kim said consumers were to blame for the shortfall.

NAND flash is used heavily in consumer-electronics applications-including MP3
players, USB flash drives and digital still cameras - which are driven by retail
sales to consumers, Kim explained.

“Spending growth on these items is expected to slow in 2008 compared to 2007 due to the US subprime mortgage crisis and its collateral impact on worldwide
consumers and economies. In light of this development, the world's largest
buyers of NAND-type flash will slow their spending growth in 2008,” he added.