In Flash Cards, Micro SD shall continue to be the winner

DQW Bureau
08 Feb 2011

In the booming Indian
domestic market, both business and consumer segments will see a major
increase in requirement of memory and flash products like computer
memory, pen drives, and Micro SD cards. In the memory market we
expect that DDR-3 will take the center stage. The trend shall
increasingly shift to higher capacities 2GB/4GB DDR-3.
Simultaneously, the market shall see a flood of low-cost motherboards
which can take DDR-2 and DDR-3 slots. Most of the modules shall ship
at 1333MHz though netbooks, low-cost MB and some notebooks shall
continue with 1066MHz. There shall also be major surge in netbooks
and notebooks driving the SODIMM market at a faster pace than
desktops, even though desktop numbers will remain higher than the
other sub-categories. The market shall be increasingly driven by more
memory-hungry applications like multimedia, high-end graphics, and

In the pen drive space,
customers are expected to shift progressively towards 8GB from 2GB
and 4GB. A significant number of 16GB and even 32GB shall be shipped.
Pen drives shall increasingly come with 'Value-Added Incentives' like
password protection, invisible partitions and complimentary contents
including songs, movies and some free software.

In Flash Cards, the Micro
SD shall continue to be the winner. There shall be an increasing
demand of Adaptors to convert MICRO SD to SD. In this segment,
majority of the demand shall be for 2GB and 4GB. Mobile phones and
cameras will utilize progressively higher capacity bundled Micro SD
Cards. The market shall continue to demand preloaded content on Micro
SD, especially MP3 songs for the mass market. Prices of memory and
flash products are becoming increasingly similar to international
market rates. There is a significant shift in consumer behavior
towards quality products though lower-end urban market and
semi-urban/rural sectors continue to be price sensitive.

Distribution channels and
end-users/customers are becoming consciously aware of stable,
established companies that offer viable warranties in India as
opposed to cheaper unknown brands offering inconsistent quality,
which disappeared without a trace. Companies with significant
investment and focus on the Indian market needs will become
increasingly more attractive to the Indian customer. Besides the
shipment of the new products, the Indian market will experience a
growing demand for upgrading. Since outdated products continue to
find usage in the secondary market within India, there was a small
but significant demand of SDR LODIMM and SODIMM. DDR-1 also continues
to be sold in reasonable numbers.

In addition, the newer
operating systems/versions and many application software are
memory-hungry, driving the demand for memory upgrade. Stabilization
of Microsoft Operating Systems in recent past has also contributed
towards the memory-upgrade market. pen drive and flash cards have
almost become consumer products. The trend of preloaded content on
these and software distribution on pen drives is also driving the
demand in the marketplace. Electronic cameras and mobiles with
built-in cameras are also creating a pull for increased Micro SD
capacity in the market.

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