Flash drive sales expected to raise 8 percent in 2012

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The iPad continues to generate buzz and sales both for the actual product and for products related to the iPad. This year alone, the sale of flash chips-solid piece of memory that is found in both mobile devices and laptops-is expected to hit an 8 percent growth in 2012, creating a $22.9 billion industry. This increase in sales has a lot to do with the high demand for smartphones, tablets, and in particular, the iPad says CIO blogger Steve Rosenbush and IHS, a global information company. They also stated that a combination of higher demand and shorter supply could result in higher prices for both corporate and consumer users.

NAND flash drives (primarily used in memory cards, USB flash drives, solid-state drives, and similar products, for general storage and transfer of data), start up instantly and don’t having moving pieces that are often found in hard drives. The flash chips allow products such as the iPad, the Macbook Air, and other tablet devices to be sleeker and less bulky than a computer with a hard-drive.

After a disappointing performance in 2011, the market is forecasted to strengthen. Giving the disappointing sales of the Windows and Android-based tablets another shot at high sales. This lag in sales allowed manufacturers to cut back on NAND production which allowed demand time to catch up.

“Such a strategy will avoid a precipitous price decline that the industry won’t be able to withstand, leading to more optimism for a stronger 2012.” said Michael Yang, senior principal analyst for memory & storage at IHS.

Overall, this year the market for tablets and competition will get intense as a new generation of flash-based Ultrabooks, which will compete with the Macbook, enters the market.

Source: CIO Journal