DRAMeXchange foresees NAND Flash price to rebound in late 3Q

Taipei, July 16, 2008 --- According to DRAMeXchange, NAND Flash spot price had either dropped slightly or remained stable over the week of July 7 to 14 as demand fades at quarter-end and is not fully in effect to the market so far. As for supply, there’s no significant change currently. Prices for mainstream 16Gb MLC chips were at the range between US$3.97 and US$4.20 and 8Gb MLC chips were between US$2.38 and US$2.27. Though prices continue to slide, the erosion is now moderating slightly.

DRAMeXchange’s analysts indicates that the demand for the end-application continues to be lackluster. Handsets, DSC, MP3/PMP shipments are trending down while UFD shipments are picking up. Weak shipments of handsets and DSCs, which together accounted for 50% of memory card demand, also slowed down the overall memory card momentum. The increasing MP3-enabled phones also cannibalized the MP3/PMP market, especially in the emerging countries. Low cost PC shipment is also being revised down to 8mn units.

We expect the inventory build cycle to begin in mid-3Q to prepare for back-to-school and Christmas holidays demand. Although demand may be weaker on a yearly basis, it may still be enough to stabilize NAND Flash price trend in 3Q. Additionally, the strong debut of 3G iPhone, which features attractive pricing, can improve sentiment and help stabilize NAND Flash price in 2H08. Forecast for iPhone shipments in 2H08 ranges between 10 to 12mn units. Therefore, DRAMeXchange foresees that NAND Flash price will gradually rebound around late 3Q.

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 www.dramexchange.com.

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.