Surplus of NAND Flash Memory To ContinueDRAMeXchange published a market research paper stating that NAND flash memory will continue to flood the market at lower prices. NAND flash memory is primarily used for storing songs, photos and other data on gadget type devices like digital cameras, MP3 players and iPods. The biggest contributing factor on why the market will continue to see cheap NAND is lack of sales.
Since production forecasts run months ahead, the market has sitting inventory. To move this inventory prices are continueing to drop. For example, DRAMeXchange reported a drop of 20% in June for NAND memory related devices.
The NAND flash market has been so bad that the creator of the chips, SanDisk, on Monday reported a surprise loss of US$68 million for the second quarter. The company blamed the supply glut for its problems, pointing out that it sold a record amount of flash, 120 percent more than the same time last year, but that prices are down 55 percent compared to then.SanDisk also reported the flash memory pricing might get worse [better for us] in the third quarter. So, it might be a good idea to start picking out your Christmas items now and make sure it’s some type of flash gadget. On the flip side, with today’s surplus means these companies are cutting back production as well, so once this flood dries up, we could see a shortage for NAND and prices jumping up…and the cycle goes on. Source: Network World.
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