USB Key Shipments Decrease 3% From 2Q12 to 3Q12, SanDisk Number 1

USB flash drive shipments decreased to 61.292 million units in the third quarter of 2012, a change of -3.08% from 2Q12, according to USB Flash Tracker, a report from the Santa Clara Consulting Group.

SCCG forecasts drive shipments to register a small increase in 4Q12. Total shipments are projected to reach 248.503 million units by the end of 2012.

The Americas market had the leading regional share in 3Q12, with 35%, followed by Europe, with 30%, AsiaPac, with 28%, and Japan, with 7%.

The average global capacity for USB flash drives was 17.38GB, but this ranged from a low of 10.50GB in Japan to a high of 21.09GB in The Americas. The leading segment was 16GB, with 28% of the market. Products with capacities greater than 8GB increased their share of the market and represented 52% of unit sales in Q3.

Average prices decreased in 3Q12, 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 -16% in the quarter.

Global USB flash drive market leaders in 3Q12 were:

SanDisk 20%
Kingston 18%
Transcend 10%
HP 7%
Verbatim 7%
Sony 4%,
PNY 3% and
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 3Q12. 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. Soon 128Gb technology will be introduced, with 19 nanometer flash and 16GB per chip.