NAND flash prices could rise in Q3 on shortages

NAND flash companies like Samsung and Toshiba could benefit

Demand for NAND flash could outstrip supply in the third quarter of this year as consumer electronics companies prepare products for the holiday season, leading to price increases and shortages, research firm iSuppli said on Friday.

"When there is a constrained market, average selling prices do go up," said Rick Pierson, senior semiconductor analyst at iSuppli. NAND flash memory is commonly used in electronics like digital cameras, smartphones and video cameras for data storage.

There was an abundant supply of NAND flash in the second quarter which led to prices trending downward, Pierson said. But devices like smartphones are integrating components like video cameras, creating a need for additional storage.

Factory output won't necessarily be constrained because of excess demand, but suppliers will allocate NAND flash shipments to key partners based on contractual obligations and relationships.

The suppliers will also direct NAND flash shipments to markets like video streaming that represent long-term growth opportunities, Pierson said.

"It's also a chance for suppliers to take profit," Pierson said. Companies such as Samsung, Toshiba, Texas Instruments and STMicroelectronics could benefit from the increased selling prices.

A shortage of components like capacitors, which helps NAND flash work on PCs and other devices, could push the price increases.

NAND flash supply and demand will reach an equilibrium in the fourth quarter which could stabilize prices, Pierson said. He couldn't comment on the effect of the increase in NAND flash prices on the end prices of consumer electronics.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags iSuppliComponentsmemory

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?