Wednesday, December 19, 2012

NAND flash prices drop 1-2% in 1H December, says DRAMeXchange


Press release; Steve Shen, DIGITIMES [Tuesday 18 December 2012]

According to DRAMeXchange, although the year-end peak replenishment period for system products has passed, and NAND flash manufacturers continue to cut production for retail markets, NAND flash contract prices for the first half of December have dipped by approximately 1-2% compared to in the second half of November.

While SK Hynix experienced a temporary power shortage on December 11, the company's NAND flash business and production, on the whole, remain unaffected. Spot prices have experienced a mild increase, although overall demand for NAND flash is still relatively weak.

Given that most smartphone and tablet makers' peak replenishment efforts for the year-end holiday period took place during late November and early December, and factoring in the potential effects of year-end settlement and inventory-related issues, buyer momentum and demand in the market have been relatively tepid. Prices, on the other hand, have been stable in the first half of December, given that NAND flash manufacturers have been increasing the proportion of system products shipped, and that shipments related to retail market products are continuing to undergo reductions.

Looking ahead, numerous NAND flash clients are displaying a bearish attitude towards sales performance during the Lunar New Year, and plan to remain conservative until Europe and US market results are revealed. As market demand gradually weakens following December, even with the NAND flash vendors' cautious supply control strategies, DRAMeXchange predicts the partially stable, partially mild downtrend associated with NAND flash prices to remain unchanged.

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