1HDec NAND Flash prices drop by 1-2%

While SK Hynix experienced a temporary power shortage on 12/11, the company's NAND Flash business and production, on the whole, remain unaffected. The spot prices, as such, experienced a mild increase, although overall demand for NAND Flash is still relatively weak. With regards to the market, given that most of the smartphone and tablet makers' peak replenishment efforts for Christmas took place during late November and early December, and factoring in the potential effects of the year-end settlement and inventory-related issues, buyer momentum and demand within the market have been relatively tepid. Prices, on the other hand, are stable in 1HDec, given that NAND Flash manufacturers have been increasing the proportion of system products shipped, and that shipments related to retail market products are continuing to undergo reductions. Looking ahead, numerous NAND Flash clients are displaying a bearish attitude towards the sales performance of the Chinese New Year, and plan to remain conservative until the European and US market results are revealed. As market demand gradually weakens following December, even with the NAND Flash vendors' cautious supply control strategies, TrendForce predicts the partially stable, partially mild downtrend associated with NAND Flash prices to remain unchanged.