USB Flash Keys Grew to 64 Million Units in 4Q12 - Santa Clara Consulting Group

USB flash drive shipments grew to 64.255 million units in the fourth quarter of 2012, a rise of 1%, influenced by the holiday buying season, according USB Flash Tracker, a report from the Santa Clara Consulting Group.

SCCG forecasts drive shipments to decline modestly in Q1/13, reflecting the seasonal shift in buying patterns. Unit shipments reached 255.642 million units in 2012 and are estimated to grow to 269.242 million units by the end of 2013.

Europe had the leading regional share in Q4/12, with 35%. The Americas region was the second-largest region, with 32%; AsiaPac followed, with 27%; and Japan had 7%.

In Q4/12, the leading capacity segment was 16GB, with 29%; followed by 8GB, with 25%; 32GB, with 20%; 4GB, with 18%; 64GB, with 6%; and 2GB, with 2% of units shipped. Globally, average capacity changed from 17,419MB in Q3/12 to 18,548MB in Q4/12, an increase of slightly more than 6%. Average capacity for 2012 was 16,988MB.

Pricing showed a decrease in the fourth quarter, with capacity growth slowing and overall pricing in decline. Some of the higher-capacity chips and USB flash drives were in better supply during the quarter. The mobile market is typically a factor in supply in Q4, which influences availability and pricing for NAND in the USB flash drive markets. For the online market, $9 or less was the sweet spot for 8GB drives. Online prices ranged from a low of $6 for a 2GB drive from various Taiwan sources to more than $500 for 128GB USB flash drives. Pricing across the regions varied, with Europe and AsiaPac being the most aggressive.

Vendors continued to promote features for differentiation and value-add, especially in areas such as security and backup; however, these applications remained niche markets.

Global branded market leaders in Q4/12: