2HAug. average contract price indicated partially flat and mildly 1-7% decline by mixed market dynamics.

2HAug. average NAND Flash contract price indicated partially flat and mildly 1%-7% decline impact by mixed market dynamics. OEM orders from system product customers seem to retain momentum and those NAND Flash vendors with higher exposure in system clients intend to remain the stable contract price in 2HAug.. However, memory card and UFD makers still contain the high inventory level while channel retail market is still sluggish. With the reluctant procurement willingness, they tend to be more hesitated toward the market and look forward for price-cut promotion at the purpose of demand stimulation. Therefore, those NAND Flash vendors with higher portion in memory card and UFD customers demonstrate the decline mainstream contract price pattern in 2HAug.

NAND Flash market is continuously impacted by some pro & con market dynamics and indicated the mixed pricing trend due to 1.) Momentum of OEM orders from system product can sustain till October peak while retail demand for memory card and UFD is still weaker, 2.) Quarter-end effect will weaken the procurement demand of customers and push suppliers to adopt promotion events on inventory concerns. 3.) New model launch effect of smart phones and tablet PCs equipped with higher NAND Flash storage capacity in 4Q10. 4.) Inventory replenishment for early October holidays in China. 5.) 2xnm output portion will gradually rise in 4Q10. 6.) Recent price-cut effect will help simulate more NAND Flash demand for year-end hot season sales etc. Given the different market perspectives held by buyers & suppliers toward the following NAND Flash pricing trend as well as the individual supplier with different customer and product mix, various pricing strategy will be implemented. DRAMeXchange expects NAND Flash contract price to remain partially stable and partially mild decline ahead of the year-end restock demand peak period.