Many of us depend on NAND flash memory – the technology at the heart of removable USB storage devices and most memory cards on the market today.
Recent projections for the NAND flash memory market forecast a global shortage that could happen in H210. High-density memory almost doubled in cost from January to December 2009. Prices are still inching up, although those for 16GB and lower-capacity units are going down gradually. The rising demand for smartphones, MP3 players and other electronic devices, including Apple’s iPod, iPhone and iPad, is pressuring NAND flash suppliers to boost output.
Market research institutes such as iSuppli expect that memory makers will not be able to fill the gap between supply and demand, resulting in shortage and price hikes this year.
Still, the bleak outlook is not causing China’s electronic makers to lose sleep. After years of coping with flash memory price and supply fluctuation, many export-oriented suppliers are confident they have seen it all. These companies are ready to fall back on various coping tactics they have developed over the years in managing the NAND flash supply problem.
For one, many exporters avoid stocking memory parts. Purchases are typically made once product orders have been confirmed. Stocks are kept to a minimum unless a price increase is imminent.
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