Sales of flash memory chips have suffered from sharp price declines in recent years as well as a downturn-induced slump in demand during the final months of 2008.
NAND flash memory is used in iPods
The primary problem has been over supply. Too many factories making too many chips – particular NAND flash, the kind put in iPods and digital cameras.
In-Stat predicts that excess demand will disappear, but not until late 2012, when a shortage will begin to appear.
The research firm says flash revenue will grow to $72 billion in that year, representing a 24 percent annual growth rate.
An over supply in 2011 will probably lead the market in a negative direction that year, says In-Stat.
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