iPad and iPhone will credit to slight shortage on NAND Flash demand in 2H-10

TAIWAN: The iPad and the iPhone 4G, the new products of Apple, have attracted many spotlights this year. According to DRAMeXchange, 2010 iPhone shipment is expected to reach 40 million units while NAND Flash consumption will account 9 percent of total.

We believe that the NAND Flash demand will be boosted by Apple products, which will likely result in the mild shortage in 2H’10.

Given the delicate contents and support from telecom carriers, iPad and iPhone 4G are definitely the hottest products in 2010. We DRAMeXchange forecast 1H10 iPad shipment will likely be 1.7 million units while 7~8 million units will be targeted for 2010. Meanwhile, NAND Flash consumption of iPad will account around 3 percent of total NAND Flash consumption.

DRAMeXchange also indicates the prosperity of iPhone. In 2010, the total iPhone shipment will be up 60 percent to 40 million units from 25 million units in 2009 with the contribution of iPhone 4G. The new iPhone 4.0 O.S will be equipped with new functionalities such as multi-tasking, integrated E-mail service, series of enterprise applications and other minor improvements from previous O.S version.

From the past experience, Apple Inc. will double the storage capacity when new iPhone is launch besides the functionality and feature improvement, according to DRAMeXchange. The 64GB iPhone 4G will likely be launched this time.

iPad is equipped with multi-touched 9.7” LED color screen and will enhance the user experience and multi-media of iPod Touch. With the help from iTunes and Apple Apps store for downloading, Apple confirms its business model based on the digital content.

Besides, Apple Inc. will also introduce new e-book service,” iBooks”, with major American publishers to expand its territory to e-book market leverage with the color screen that iPad is equipped with. Despite the minor issue for WIFI iPad, we think that the iPad will show the great potential since Apple Apps and iPhone have done the great effort for iPad.

Besides WIFI version, 3G+WIFI iPad is announced to be launched at 4/30 that pricing at US$629/729/829 for 16GB/32GB/64GB respectively. AT&T will offer the 3G downloading service package that we DRAMeXchange think it will help to raise the consumer motivation.

Since new consumer electronics product such as iPod and iPhone always turn to the market hit with the strong shipment momentum, NAND Flash demand will be largely impact.

According to the FY2Q10 results that Apple released at 4/20, the iPhone shipment is record at 8.75 million units with 131 percent YoY growth rate besides the amazing profit figures. The iPhone market share in smartphone is sharply rocketing in past years that 2009 shipment is up 80 percent YoY to 25 million units.

DRAMeXchange indicates that iPhone shipment will continue its strong momentum given the great assistance from Apple Apps and open bungle package from various telecom carriers.