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NAND flash price slide to continue

NAND flash price slide to continue

Contract pricing for NAND flash components continues to slip according to TrendForce's market analysis, which could spell long-term trouble for the market.

The wholesale price of NAND flash components has continued its global slide, dropping by up to 10 per cent in just two weeks in a decline projected to continue into the future - despite manufacturers restricting supply to boost prices.

Although NAND flash, the critical component of solid-state drives (SSDs), continues to prove a popular alternative to traditional spinning-rust mechanical storage devices - and, in the case of highly-portable devices like smartphones and tablets, the only real choice - it isn't selling quite as well as its manufacturers had hoped. A slowdown in sales has hit prices hard, and although manufacturers have been restricting their output in an effort to decrease supply and increase pricing stockpiles are continuing to grow.

The result, market watcher TrendForce has claimed in its latest DRAMeXchange report on the memory market, is a slide that will wipe out recent price increases altogether. In the second half of August, the company claims, contract prices for NAND flash components have dropped by up to 10 per cent, and that will continue through to the end of the year as additional manufacturing plants come on-line ahead of what manufacturers are hoping will be a boost to demand.

TrendForce is placing the blame for the dip, which is threatening to wipe out gains made when manufacturers noticed a threat of oversupply last year and slashed their manufacturing rates to compensate, on poor sales in the laptop market. According to the company's projections, the laptop market will end the year 10 per cent down compared to 2012 - and that drop is exactly the opposite of what NAND flash makers had been hoping.

The company is even warning that a raft of product launches - with numerous manufacturers due to launch new tablets, smartphones and hybrid devices in the coming weeks - may not be enough to correct the oversupply situation, meaning a continued slide well into October and even November.

For consumers, this could be good news in the short term: a drop in contract prices means a lowered bill of materials for device manufacturers, which in turn could allow for reduced retail prices. In the long term, however, NAND flash manufacturers are likely to constrain their supplies even further - and if a sudden spike in demand occurs, prices could rocket to well above their high at the start of the year.

12 Comments

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Parge 5th September 2013, 11:37 Quote
Oh good, this should mean that companies will no longer charge massively over the odds for more storage in smartphones.

HAHAHAHAHAHAHAHAHA
damien c 5th September 2013, 11:53 Quote
Quote:
Originally Posted by Parge
Oh good, this should mean that companies will no longer charge massively over the odds for more storage in smartphones.

HAHAHAHAHAHAHAHAHA


We can but only dream.

We all know better though as they will continue to charge the same amount.
SexyHyde 5th September 2013, 11:58 Quote
Its just waiting for the one company to stop being silly with the size / price before everyone follows track. Everyone is stuck with the copy Apple model or the one option only.
Fracture 5th September 2013, 12:09 Quote
I'm looking forward to doing away with HDDs and being able to more feasibly store all more data on SSDs. Hopefully someone steps up and starts offering more budget orientated mass SSD storage options and their price/gig continues to decline...
azazel1024 5th September 2013, 14:42 Quote
Quote:
Originally Posted by Parge
Oh good, this should mean that companies will no longer charge massively over the odds for more storage in smartphones.

HAHAHAHAHAHAHAHAHA

No, it just means more profit for those manufacturers.

I dream of the day that 32GB is the introductory storage size of phones and tablets (64GB for Windows tablets).
Shirty 5th September 2013, 14:49 Quote
Hell, a terabyte of NAND fits into the same space as 64GB, let's push for the revolution!
rollo 5th September 2013, 18:37 Quote
Pc sales are down hard and will likely see further dips. Smartphone bubble has reached saturation point in the developed countries. The whole ssd revolution in pc components has not took off. Most still buying a small 64gb drive.

Ram prices are going up whilst storage continues its drop.
Gradius 5th September 2013, 20:25 Quote
If everyone could hold for 6 month the "dream" wouldn't be "dream" anymore!
law99 5th September 2013, 20:28 Quote
I need another flash drive though... I don't want to wait! :'(
MSHunter 8th September 2013, 13:31 Quote
when they say they reduce production to increase demand and price, doesnt that sound like price fixing? If not manipulation? The things you can do with the right amount of capital.........
LightningPete 9th September 2013, 01:01 Quote
Quote:
Originally Posted by MSHunter
when they say they reduce production to increase demand and price, doesnt that sound like price fixing? If not manipulation? The things you can do with the right amount of capital.........

Weird i thought exactly the same thing
They got busted for doing that with Milk in the UK, but alas if these manufacturers are in multiple countries I suppose they could only restrict the sales on a country by country basis via each countries courts. But anyway........
monkiboi 9th September 2013, 11:19 Quote
The way it's written does have a feel of price fixing but, on the other hand, it would be commercial suicide to keep producing something where current supplies are in excess.
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