iSuppli projected worldwide NAND flash memory revenue will fall by 14% to the $12 billion level in 2008, down from $13.9 billion in 2007. In 2009, global NAND flash memory revenue will decline by another 15%, according to the research company's data.

The company's previous forecast, issued in Q3, called for a 3% decline in 2008 and 12% growth in 2009. iSuppli in April cut its original 2008 NAND revenue forecast by two-thirds to 9% on adjusted forecasts from NAND buyers. 

The 2008 decline is a historic one, said iSuppli, noting that this year will mark the first time that worldwide NAND-flash revenue has fallen on an annual basis.

The research company said the fall represents "a major reversal of fortune" for a product segment in which revenue routinely expanded by triple-digit percentages in the late 1990s and early 2000s, and that as recently as 2005 generated 62.2% annual growth.

NAND sales, which are driven mostly by consumer products like PMPs (personal media players), flash storage cards, and USB flash drives, now face crumbling consumer confidence arising from the global economic situation. With the challenging sales situation and the inventory overhang among OEM customers, NAND chip suppliers have cut chip prices to increase their sales, iSuppli said.

By: DocMemory
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