China Flash Disk Market Reaches 3.9 Million Sets in 1Q08

CCID Consulting, China’s research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong Exchange, recently analyzed China’s flash disk market in 2008. CCID Consulting’s data shows the sales volume of China’s flash disk market in 2008Q1 reaches 3.9028 million sets, up 43.5% year-on-year. The good opening in 2008 lead to optimistic forecasts to the market outlook.

In 2008, China’s flash disk market reviews three characteristics:

• Upgrade of Large Capacity Flash Disks with 2G Now Most Popular
• Flash memory capacity upgrading is the most significant change in the market. In 2008, 2G flash memories have been the mainstream products.
• 4G and 8G flash memories, unattainable products in 2007, are acceptable to most consumers in 2008.

Capability Structure of Flash Disk Market, 1Q07-1Q08
(Unit: 10,000 Sets)
Source: CCID Consulting, April, 2008

Aigo Enters Vogue Market with Image Breakthrough
As a leading flash memory producer, Aigo usually focuses on high-end market and industry customers, and has maintained a traditional commercial image. Recently, Aigo’s lover vision USB disks obtained good market reaction. About 20% sales volume growth comes from women consumers in 2007.
After the success in personal user market, Aigo pays more attention to this segment market, emphasizing segment product design. For example, Aigo releases a series of products for women users, such as butterfly like USB disk. On the other hand, Aigo adjusts its price strategy. In 2008 Q1, Aigo achieves a satisfactory performance in personal user market.

Kingston Enjoys Most Rapid Growth
In 2008Q1, the sales volume of Kingston is up 360% year-on-year, and Kingston becomes a dark horse in the flash disk market, which impacts on leading brands. Because of the advantages in channel, upstream chip resource and products’ performance price ratio, Kingston acquires its great growth in one year.
Similarly, Lenovo’s flash disk market is up 270% year-on-year, with sales volume similar to with Aigo, which has the largest sales volume. Lenovo’s major advantages are big brand, independent channel, Olympic propaganda and IT industrial sources.

Brand Pattern of Flash Disk Market, 1Q07-1Q08
(Unit: 10,000 Sets)
Source: CCID Consulting, April, 2008