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Press Release

DRAMeXchange: price stabilization for NAND Flash after August

Tuesday , 07 / 22 / 2008

Taipei, July 1, 2008 --- DRAMeXchange indicates that average NAND Flash contract price of 2H June dropped at the range between 5 to 25% due to the quarter-end factor. Market suppliers take strategic price-cut policy to lower their stock and stimulate the weaker NAND Flash market demand. NAND Flash price is likely to gradually stabilize after Mid-July pushing by lower price, new demand from 3G iPhone, smart phones and Low-cost PCs. Price is expected to rebound and stabilize as the traditional 2H hot season demand gradually recovers.

Fig 1. Spot price trend of 8Gb MLC NAND Flash, June 2008

Source: DRAMeXchange, June 2008

DRAMeXchange believes that the key factors behind the consistent price decline are:
1. Seasonal downturn: Buyers are in lack of a strong incentive to make their procurement under a mixed market outlook where downstream players are also reluctant to grow their inventory level.
2. High crude oil price: Consumers are being discouraged under inflation pressure amid high crude oil price. Not only shopping incentive for new products has been discouraged, but also replacement demand.
3. Quarterly-end financial pressure: Vendors are more flexible over price bargaining amid inventory pressure concern
4. Weak demand for memory cards;
5. Pessimistic economic outlook that implies an absence of a powerful catalyst to consumer electronics sales.

DRAMeXchange foresees a stabilizing price trend is expected in mid 3Q08 because:
1. Upcoming seasonality upturn for consumer electronics;
2. Apple 3G iPhone shipments are expected to hit 12mn units as global telecom service carries will bundle sales in a more favorable package;
3. Low-cost PC market is expected to materialize with shipments to hit 8mn units.

About DRAMeXchange

DRAMeXchange is a global leading provider of market intelligence, in-depth analysis reports and consultant services on major electronics components. Our company consists of 3 major research divisions---DRAMeXchange, WitsView and LEDinside, which cover the DRAM, NAND Flash, PC and display research sectors. You can learn more about DRAMeXchange by visiting

In the year 2000, the company started to deliver market intelligence services under the name of DRAMeXchange technology. This included the current business environment, real-time spot trading prices, market trends, capital spending and wafer capacity trends, the impact of DRAM/flash memory products on the market, and other relevant PC industry information.

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NAND Flash contract price spot price 8Gb MLC

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