Samsung drops NAND flash prices amid competition from SanDisk, weaker-than-expected iPod nano sales

“Samsung Electronics has been dumping NAND flash with its customers since late February amid competition from SanDisk, and the situation is likely to become more severe this month, according to channel sources,” Josephine Lien and Esther Lam report for DigiTimes.

“With weaker-than-expected iPod nano sales this year, Samsung has been trying to maintain control over its inventory levels by dumping excess stock with memory module makers, according to sources at downstream players. Samsung is pushing its products hardest with companies that it has close ties with, but other firms are receiving attractive quotes from the memory maker as well,” Lien and Lam report. “Inventory pressure at Samsung has been further aggravated by price reductions from SanDisk.”

Full article here.

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  1. iPod sales are in-line or greater than forecast for this quarter according to every analyst report I’ve read so for… All this means is that hard drive iPod sales are greater than expected..

  2. I don’t get a break out by model, but my personal channel checks don’t reflect a slowing in iPod sales overall.

    Anecdotally, from comments received, it appears that iPods with video capability are more in demand than straight music players.

    I’m not getting overly excited by Samsung’s price actions.

  3. Actually lower NAND prices is very good news, even if caused by lower nano sales volume.

    Much has been speculated about Apple introducing ‘instant on’ capabilities with the new Intel Macs. In order to do this Apple will require a great deal of NAND memory to store the OS (or at least minimum boot elements) in RAM. This is cost probhibitive at current NAND price points.

    Competition from SanDisk (and soon from Micron/Intel) will further dampen NAND memory prices further, making it possible to expeand their use in computers and other devices. iPhone anyone?

  4. Hang on are you suggesting that Samsung have specifically said that nano sales are down? May be the case but ‘channel sources’ are somewhat different and such sources have been wrong many times before, like in December most recently. Best to wait see I think.

  5. I’m with you, spyinthesky.

    How does anybody know what Nano sales are without Apple telling them? And Apple ain’t tellin’ nobody nothin’. As you point out, the “channel sources” (I love business speak) have been as wrong as wrong can be their last few attempts.

    Besides, Apple has a huge contract with Samsung (isn’t it for $5 Billion worth) for memory?.

    I think the real truth is that SanDisk has upset Samsung rather badly with their good memory sales, and (distant) #2 market position for memory based MP3 players. Samsung has made up a story to justify lowering their formerly high prices so it doesn’t look like they were gouging before.

    Now, an interesting story would be about how all this affects the price that Apple has contracted.

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