Shipments of USB Keys Reached 273 Million Units in 2013 – SCCG

USB flash drive shipments increased to 68 million units in 4Q13, a change of 1% influenced by seasonal demand, according to USB Flash Tracker, Executive Summary Year End 2013, a report from Santa Clara Consulting Group.

SCCG forecasts drives shipments to decline modestly in 1Q14, reflecting a shift in buying patterns.

Unit shipments reached 273 million units in 2013 and are estimated to peak at 300 million units by 2016, before gradually declining.

Europe had the leading regional share in 4Q13, with 38%. The Americas was the second-largest region, with 30%; AsiaPac followed with 26%; and Japan had 7%.

In 4Q13, the leading capacity segment was 16GB, with 27%; followed by 32GB, with 26%. Globally, average capacity changed from 23GB in Q3/13 to 25GB in 4Q13, an increase of slightly more than 9%. Average capacity for 2013 increased 30% over 2012.

Pricing showed a decrease in the fourth quarter, with capacity growth slowing and overall pricing in decline.

The mobile market is typically a factor in supply in 4Q, which influences availability and pricing for NAND in the USB flash drive markets. Online prices ranged from a low of $6 for a 2GB drive from various Taiwan sources to more than $85 for 256GB 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 4Q13 were:

• SanDisk 25%,
• Kingston 18%,
• Transcend 9%,
• Verbatim 5%,
• PNY 4%,
• HP 4%,
• Sony 3%,
• TDK 2%,
• Buffalo 2%, and
• Imation 1%.

NAND flash chips were in better supply in 4Q13.

Manufacturers have been trying to match demand and reduce volatility in the market, but this has not been easy. In 1Q14 it appears the demand will ease, pricing will drop, and more supply will be available for retail products like SD cards and USB flash drives.