Demand for mobile flash memory declines as cloud usage grows

The rising availability of cloud storage and streaming services has lowered demand for nand flash memory in next generation smartphones and tablets, new research shows.

According to IHS, memory capacity per mobile phone declined to 12.8GB in the first half of this year, compared to 13.2GB in 2012. The decline comes in stark contrast to the nearly threefold increase that took place between the first half of 2011 and 2012, when flash memory in phones surged from 4.6 to 13.2GB. Ryan Chien, analyst for memory and storage at IHS, said: "Mobile device brands increasingly are offering their own application ecosystems and online storage benefits that perform the same functions as on board nand flash. "With mobile platforms a leading growth driver for the nand industry, this trend represents a major cause of concern for flash memory makers."