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iPad2 Adds Cool Improvements Yet Memory Remains Unchanged

The much anticipated announcement of the Apple iPad2 took place today.  Steve Jobs actually keynoted the announcement and received a standing ovation, despite his ongoing health issues.  Many of the announced features were expected improvements over the iPad; the basics include:

  • Dual-core A5 processors increasing the CPU speed two-fold with graphics up to nine times faster.
  • Front and rear facing cameras and gyroscope.
  • Form factor is thinner than the iPhone4 at 8.8mm and weighs less than its predecessor at 1.3lbs vs. 1.5lbs.
  • Battery life remains the same at 10 hours.
  • HDMI output for 1080p quality viewing from iPad2 to the TV.
  • Upgraded operating system in the iOS4.3 and faster Javascript.
  • 65,000 native iPad apps available.
  • Ships in the US on March 11th and WW on March 25th.

With all these changes, two aspects of the iPad2 remain the same as the iPad: memory capacity(still available in 16GB, 32GB, and 64GB) and pricing.  However, the software and application improvements and additions associated with the release of the iPad2, as well as the release of Tablet PCs from Motorola, Samsung, Dell, HP and others will continue to drive NAND Flash demand.  Approximately 17 million Tablet PCs shipped in 2010.  15 million of those were iPad sales.  In 2011, Semico projects iPad and iPad2 sales of over 30 million units worldwide.  The introduction of the iPad2 and competition from others entering the space will help stabilize Flash memory  ASPs and lead to NAND Flash revenues increasing nearly 10% in 2011.  On behalf of NAND Flash manufacturers around the world, thank you Apple and Tablet PCs!

Sam Caldwell, Analyst

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