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Press Release

Mainstream MLC NAND Flash average contract price roughly stayed flat in 2H June

Wednesday , 06 / 24 / 2009

Taiepi,June 24th 2009----Mainstream MLC NAND Flash average contract price stayed flat or slightly declined in 2H June due to the interaction of quarter-end, slow reason and new smart phone launch effects. Therefore, recent NAND Flash market showed consolidating status.Says DRAMeXchange.
 Upstream & downstream NAND Flash related makers intend to lower their inventory level by the end of June. Moreover, June and July remain the traditionally slow season for NAND Flash’s major applications such as memory card and UFD. Meanwhile, NAND Flash cost has largely increased in 1H09. They both leads to the purchase hesitation for memory card and UFD makers in June. Memory card makers urge NAND Flash suppliers to offer some price discount in order to stimulate the demand in slow season. Some NAND Flash suppliers thus slightly cut price to help increase  clients’ procurement volume. Therefore, contract price for some products slightly declined in 2H June.
 With the exciting sales figures of new iPhone 3GS and other new smartphone launch to the market, some NAND Flash suppliers will benefit from these system maker customers’ restock demand in 3Q09.  Some NAND Flash suppliers thus can maintain the stable pricing policy and help improve the profitability. DRAMeXchange is confident that contract price for certain products stayed flat in 2H June.
 Given the fact that more new smartphone will launch in 3Q09, 3G cellular phone upgrade demand in China market and U.S. economy expected to gradually recover in 4Q09 will help revive the year-end holiday sales, demand for NAND Flash related products is expected to gradually improve quarter by quarter in 2H09.  
 However, in light of the NAND Flash demand is expected to further improve in 2H09, DRAMeXchange expects that some NAND Flash suppliers to slightly increase their output in 2H09 according the latest market consumption status. Considering that, DRAMeXchange believes that  NAND Flash market to stay at the more balanced supply/demand status in 3Q09. As the slow season effect and the new product launch effect both will affect the NAND Flash market after the 2Q quarter-end period, DRAMeXchange predicts that NAND Flash contract price to stay flat or slightly soften in July under the tug-of-war effect of positive & negative factors.



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