The NAND flash memory market, which has seen rises in average selling prices and value in the first half of 2013, could be about to turn down, due to building inventory and caution about demand in the second half, according to DRAMexchange, a research division of TrendForce.
DRAMexchange, which monitors memory prices on the spot market, said that NAND flash memory contract prices dropped by between 6 and 9 percent in the second half of July, ending an upward movement that had lasted since May.
The firm ascribed the dip in prices to double ordering of memories by manufacturers preparing for the second half of the year and the fact that the third quarter now appears to be weaker than previously expected with smartphone, tablet, and notebook computer vendors making downward revisions to their shipment forecasts.
The fourth quarter is still unknown, and system OEMs are treating the outlook with caution, DRAMexchange said.
The USB Flash Drive market was weaker than expected in the the second quarter, and demand in the current quarter is also sluggish, the firm said. This has also weakened NAND flash price momentum, and, as result, contract prices are expected to keep on dropping throughout August.