Smartphones to Overtake Feature Phones in Flash Memory Consumption Next Year

From X-bit Labs: Smartphones next year will account for a larger share of NAND flash memory usage than feature phones, the first time this has ever happened. That means that between 2012 and 2013 there will be a 29% growth in flash memory shipments for smartphones, versus an 11% decline for feature phones.

Approximately 792 million flash memory units, including both NOR and NAND varieties, will ship in 2013 to smartphones, compared to 703 million units for feature phones, according to IHS iSuppli market tracking firm. This compares to a total of 790 million units this year for feature phones, and 613 million units for smartphones.

“Because feature phones this year will remain the largest segment of the global mobile handset market, they will continue to consume the largest amount of flash memory of any single type of phone. However, a permanent reversal will ensue next year as smartphones overtake feature phones in total units and flash memory shipments. This illustrates the rising influence of smartphones within technology markets,” said Ryan Chien, analyst for memory and storage at IHS.

Despite their anticipated loss of market leadership, feature phones will continue to make up a substantial portion of flash memory shipments in the years ahead, accounting for well over 500 million units each year through 2016.

Overall, flash memory densities continue to rise as bit costs erode and as feature phones grow in sophistication to meet the changing needs of consumers, especially in the emerging markets of the developing world where consumers are becoming increasingly mobile-centric. High-density NOR remains common in feature phones because of its superior speed for code execution, while NAND densities of 128MB can now be found in mainstream feature handsets in order to handle applications and media storage.

The continued high usage of flash memory in feature phones is due to various factors. For instance, superior cameras of 2MP to 3MP are now common in the handsets, with more than 400 million feature phones shipping with such cameras this year. Also playing a factor is the increased utilization of feature phones as portable music players – a functionality that encourages higher storage densities. A third driver is the penetration of wireless 3G into feature phones, facilitating more frequent usage of apps in the handsets.

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