TrendForce: 2H’Nov NAND Flash Contract Prices Continue to Drop Due to Underwhelming Peak Quarter

According to DRAMeXchange, a research division of TrendForce, the 2H’Nov NAND Flash contract prices fell 6%-11% due to the disappointing peak quarter and the effects of the quarter-end accounting period on a US-based NAND Flash manufacturer.

The demand for UFD and memory cards has been consistently weak and did not improve even during the US and European peak quarters. Furthermore, as the sales of Ultrabooks and high-end smartphone and tablet products were not as strong as expected, more and more NAND Flash manufacturers are feeling the pressure to digest their capacity. Along with this pressure, the effects of the quarter-end accounting period have compelled a US-based NAND Flash manufacturer to be more aggressive with its NAND Flash pricing strategies, which in turn raised the pressure for other manufacturers to adjust their price. These are among the reasons why NAND Flash contract prices have continued to fall throughout 2H’Nov.

Looking at the future, with the replenishment momentum of the traditional US/European peak sales period coming to an end, demand is projected to continue shrinking in December. Even with the Chinese New Year sales period set to arrive, both the channel clients and system OEM clients remain reserved about the market’s future. With the NAND Flash buyers being conservative about re-stocking and supplies anticipated to rise following the migration to 1xnm technology, the NAND Flash contract prices are expected to continue falling.