Gartner has reduced its NAND flash growth forecast by half for 2008 due to oversupply conditions in a softening market that is not expected to relent until the third quarter of 2008. Gartner’s previous projection showed close to 30 percent growth for the NAND market in 2008 but the market research firm now believes that a worse than expected pricing environment will cut growth levels to less than 15 percent for the year. 

The market research firm also noted that the DRAM market had in effect been in recession since the beginning of 2007 and that the situation was unlikely to change much in 2008, though a recovery could materialize in 2009 rather than 2008 as previously projected.

However, Gartner is only projecting a CAGR for memory devices of 0.5 percent through 2012.