Slow Season Effect: 1HJuly mainstream MLC NAND Flash contract price slightly dropped 1%-5%.

 Taipei,July 13th 2009-----End-customer’s purchase willingness in early July is cautious since July is traditionally regarded as the slow season for NAND Flash main products such as memory card and UFD. Inventory level for some card makers is still above one month. NAND Flash vendors slightly lower mainstream MLC NAND Flash contract price to enhance the purchase volume. Therefore, 1HJuly contract price of mainstream MLC NAND Flash slightly decreased 1%-5%.Says DRAMeXchange.
 16Gb MLC average contract price has dropped 7% to US$4 in 1HJuly from US$4.3 in May while 32Gb MLC average contract price has decreased 12% to US$6.64 in 1HJuly from US$7.56 during the same period. 32Gb MLC contract price showed the bigger downward pricing trend since most vendors already migrated to more advanced process technologies to produce high-density products. Therefore, price cut in promotion for 32Gb MLC was larger than 16Gb MLC over the past two months, according to DRAMeXchange.
 Benefited from hot sales of iPhone 3GS and the new smartphone models launched, NAND Flash suppliers eagerly seek to increase the shipment portion of electronic system maker customers in their product mix to ease the slow season effects by memory card and UFD to improve profitability and stabilize market price.
 On the other hand, end-customers urge suppliers to further offer some price discount to help them stimulate the market demand in light of the slow season effect, higher inventory level at hand and cost-down efforts of suppliers’ process technology upgrade. Buyers and suppliers have different opinions toward the short-term market view and pricing trend and inventory replenishment for year-end hot reason is expected to warm up in August. The NAND market may continue to show the tug-of-war status in July due to dissimilar positive & negative market factors perceived & expected by both sides. Therefore, the NAND Flash contract price is likely to somewhat soften or stay flat in the short term.