TrendForce: Market penetration of USB 3.0 Flash drive is only 10%

DRAMeXchange has said the market penetration rate for USB 3.0 flash drives may only be 10% in 2013, which is weaker than expected. Below is the release from DRAMeXchange on USB 3.0 Flash Drive market: Even though the size of the USB 3.0 flash drive market has yet to expand, a number of controller IC manufacturers are already starting to hasten their research developments and investments. This is among the reasons why the ROI for USB 3.0 products fell short of expectations, and why leading manufacturers may soon emerge within the market. In 2Q13, the USB 3.0 flash drive shipments reached 5-6 million units (the same as the previous quarter), whereas market penetration rate ended up at only 5% (see Figure-1). The unimpressive sales can mostly be attributed to the tightened NAND Flash supplies, the not-yet-refined controller IC solutions for USB 3.0 flash drives, poor PC sales, and the intensified price wars among the major USB 2.0 flash drive manufacturers. Despite the possibility of an improved NAND Flash supply situation in 2H13 and the upcoming release of the cost-efficient Crystal Free USB 3.0 Controller IC, the persistence of the USB 2.0 price competition and pressures of declining NAND Flash prices are expected to put a noticeable strain on USB 3.0 flash drive sales. In Q4, the USB 3.0 flash drive penetration rate is likely to only grow slightly to 10-15%. Tren...