Warning/Caution
on Channels' inventory as time approaching to year end.
As market trading time is approaching
the closing period for Christmas and New Year holiday, some marketers probably
will begin to sell out from channels' inventory and take the profit to have
a happy ending for the year 2001. The focus product will most likely be
SDRAM product which is in the comparative weak price position right now.
Near the year-end,
beware of selling out of Inventory.
The first paragraph, we discussed
about the channels and traders. Now, be careful of the year-end for most
of the DRAM companies. Even the price is much better than 2 months ago,
it could look better in the inventory stock book value. But still have the
possibility of the selling out of inventory pressure from some of DRAM makers.
Seller side is
raising too rapidly in short-term; buyer side stops to watch the situation.
For past month, supply side's well
control on shipment does take effect on raising price. But the rising percentage
and speed are too high and rapidly, buyer side begins to stop at current
price and watch carefully for the demand. Our assumption, $2 and $4 for
128Mb, 256Mb respectively will be a critical point for price to keep rising
at the end of this year.
