Flash Oversupply and Apple

Flash memory producers could actually suffer from oversupply this fall without Apple's help, say new estimates from southeast Asian researchers. Although initial reckoning suggested that Samsung's unprecedented factory power cut and the subsequent loss of millions of chips could have reduced world supply of NAND flash by as much as 20 percent, the industry as a whole is said to have quickly recovered from the blow and may only see a shortfall of three to four percent in September. Prices for the chips, which are used in many handheld devices, could quickly settle down after the surge triggered by panic after Samsung's mishap.

However, the rapid recovery may actually backfire on suppliers and could well depend on Apple to maintain a balance, the insiders claim. With new factories and refined processes set to come online in October, the NAND flash business will much more easily meet demand and could surpass it without particularly large orders, of which Apple would be the most likely source.

A recent study by DRAMeXchange supports the claim, arguing that new iPods and the iPhone could consume as much as quarter of all flash memory produced worldwide as Apple increases overall capacity and sells more of each player. The California firm is scheduled to hold a music-related event next week that could introduce new iPod models and will likely spur demand in the holiday season, potentially alleviating concerns about an oversupply that would force lower prices on chipmakers.

By Electronista Staff