Apple's iPad is expected to benefit Korea parts makers, as it may spur demand for tablet PCs, which use touch screens and memory chips, analysts said Sunday.
Apple's hugely-popular iPhone stimulated the smartphone market, boosting makers of NAND flash memory chips, especially Samsung and Hynix, which supply their products for the iPhone.
Samsung is also a NAND supplier for the upcoming iPad.
It remains to be seen whether the iPad will be able to achieve similar success to the iPhone, but the new device has prompted other PC makers such as HP and Dell to launch new tablet PCs.
NAND flash memory chips are used to store data in portable electronics products such as smartphones, MP3 players and digital cameras.
"The iPad could drive NAND flash sales as it is a new application that consumes NAND flash. But I am not sure whether the new device will take off or not," a NAND industry official told The Korea Herald on condition of anonymity.
DRAMeXchange expected that the iPad demand created by Apple would exacerbate the shortages in the NAND market in the second half of 2010.
"Whenever Apple launches new products, the popularity of the new device may bring forth a capacity crunch to the NAND flash market," it said in a report released on Friday.
"We believe that the iPad may sell 1.5 million units in the first half of 2010, a total of 9 million-10 million for 2010. Consequently, the iPad will consume approximately 2 per cent of the total NAND flash demand in 2010."
Lee Ka-keun, an analyst at IBK Securities, also predicted that NAND demand would rise 7 to 8 per cent should 10 million units of iPad be sold this year.
"Considering competitors' planned table PCs, the rise of NAND demand stemming from table PCs could rise as much as 15 to 20 per cent, leading to tight supply-demand conditions in the NAND market this year," Lee said in a report last week.
Hynix, the world's No. 3 NAND flash maker, also said the iPad would "have a positive effect on the NAND industry", a Hynix spokesperson said. He added that the company does not currently supply its product for Apple's iPad.
Apple is the biggest consumer of NAND, with its iPod, iPod Touch and iPhone making up 20 per cent of the NAND flash demand, according to DRAM exchange.
The iPad, which features a 9.7-inch multi-touch display, is also expected to lift LG Display, the No. 2 panel maker, which is named as one of the possible suppliers of the panel. Early this month, LG Display CEO, declined to comment on the possible supply, but he said: "We have maintained good relations with Apple. ... Apple likes our technology."
He also expected tablet PCs to "create a quite big market," noting they are small, light and touch-friendly.