63 Million USB Flash Keys Shipped in 2Q12, +6% From 1Q12

USB flash drive shipments increased to 63.236 million units in the second quarter of 2012, a change of 6.09% from 1Q12, according to the Santa Clara Consulting Group‘s USB Flash Tracker.

SCCG forecasts drive shipments to register a small increase in Q3. Total shipments are projected to reach 257.501 million units by the end of 2012.

The Americas market had the leading regional share in 2Q12, with 35%, followed by Europe, with 30%, AsiaPac, with 29%, and Japan, with 7%.

The average global capacity for USB flash drives was 16.16GB, but this ranged from a low of 9.34GB in Japan to a high of 20.28GB in The Americas. The leading segment was 16GB, with 27% of the market. Products with capacities greater than 8GB increased their share of the market and represented 48% of unit sales in 2Q12.

Average prices decreased in 2Q12, influenced by a better supply of NAND and controllers and a slower shift to higher-capacity USB flash drives. USB flash drive pricing into distribution changed by an average of 7% in the quarter.

Global USB flash drive market leaders in 2Q12

• SanDisk: 20%
• Kingston: 18%
• Transcend: 11%
• HP: 8%
• Verbatim: 7%
• PNY: 3%
• Sony: 2%
• Imation: 2%

The market continues to be quite fragmented, with few brands commanding a significant global position and several vendors having strong regional positions in specific countries.

NAND flash chips were in oversupply in the second quarter of 2012. Manufacturers have been trying to match demand and reduce volatility in the market, but this has not been easy. By the end of the quarter, excess supply was resulting in lower prices and customers maintaining very lean inventory levels. Samsung maintained its lead in NAND chip sales, and Toshiba continued to be a strong second. Apple continues to influence the market, supporting its iPhone, iPad, and iPod product lines with flash chips.

64Gb technology, featuring 24 nanometer flash is standard, offering 8GB per chip. The 128Gb technology is expected to be introduced soon, with 19 nanometer flash, and 16GB per chip.