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As a result of an 11% decrease in average DRAM contract price worldwide in addition to notebook and smartphone market seasonality, global DRAM industry value fell by 7.5% QoQ in the first quarter to US$12 billion. As top-tier memory makers advance to 20nm and 25nm process technology, bit output is on the rise. Furthermore, DRAM sales reached a recent high in the fourth quarter of 2014, but once peak demand subsided increased production and high inventory levels pressured manufacturers to lower prices. Some manufacturers began adjusting their product mix in the first quarter, hoping to achieve price equilibrium...
Seasonality resulted in NAND flash oversupply in the first quarter, bringing average chip price down by nearly 10%. NAND flash vendors’ revenues decreased compared to the fourth quarter. TrendForce slight oversupply to continue in the first half of the second quarter, but as new smartphones hit the market beginning in late May and SSD demand picks up, NAND flash market supply and demand should be balanced in the second half of the year...
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