Flash prices declining, but units are way up

The average selling price of flash memory chips will plummet by 55 percent this year, the same as last year, but manufacturers aren't frowning in their Cap'n Crunch. Unit shipments will grow by 187 percent, according to research firm iSuppli.

In the end, that means that the overall revenue generated from flash will grow from 10.7 billion in 2005 to $13.8 billion in 2006, a 28 percent increase. Earlier, iSuppli predicted a rise to $16 billion in 2006, so the pace has slowed a little, but it's still a strong market, the firm stated.

The market for DRAM, meanwhile, continues its steady shuffle. Worldwide DRAM revenue is expected to rise to $26.4 billion in 2006, up 6.2 percent from $24.8 billion in 2005. iSuppli previously expected a 5 percent contraction in DRAM revenue for the year.

DRAM gets used in PCs. The data on DRAM chips disappears when the host computer shouts down. Flash, which can retain data for ten years or more, comes in memory cards, MP3 players and cameras.