iPod Memory Order Cut

 Reports say that as of Wednesday of this week the Apple Corporation cut the amount of NAND flash memory for the 2008 year that iSuppli would have supplied Apple with for iPods and Iphones.

iPod Memory Order Cut, Is This an Indication of Slower Sales?

 Reports say that as of Wednesday of this week the Apple Corporation cut the amount of NAND flash memory for the 2008 year that iSuppli would have supplied Apple with for iPods and Iphones.

The iSuppli firm who supplies a large enough amount of this type of memory stated that it is felt the effect of this decrease in orders could be a warning that the Apple iPod sales will slow this spring along with the rest of the national ecconomy.

This also could prove to be a decisive factor in the revenue of the iSuppli Company……… Apple spent an approximate $1.2 billion dollars on flash memory in the 2007 year, which is another indication with this cut in orders that the Apple iPod sales are expected to be slower this year.

Prior to this announcement iSuppli had forecasted that the NAND flash memory orders would increase by approximately 32.2% and they had expected this would vastly increase their market growth.

This comes as a surprise after the recent trade shows in which Apple brought their new iPods to the public with larger storage space and the information released about the long awaited movies that would be available on iTunes. This news should be interesting to watch,especially from an economic perspective in general.

On the supply side, capital spending on NAND production in 2008 will grow by over twenty percent, which will cause a drop in prices, iSuppi said. As a result, suppliers are likely to go into the red in the first quarter of this year and are unlikely to recover in the second quarter.

Signs of market troubles were evident in the fourth quarter of last year, as global NAND revenue declined 2.4% from the third quarter to $4.1 billion. Of the top-eight NAND suppliers, six suffered sequential declines in revenues

Source: http://www.apolloapps.com/?p=7


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