This is not a great time to be a maker of NAND or DRAM products

Feb 7, 2012 09:17 GMT  ·  By

We wrote that memory prices had finally stabilized, more or less, but the price point is quite low compared to what companies see as ideal.

Sure enough, reports are coming in about how makers of DRAM and NAND products have definitely seen better days.

During the month of January 2012, they saw their sales dropping on month by 20%, at the very least.

Adata estimates a reduction of 23.8%, while Transcend reported a decline of 20-30%.

Furthermore, Phison Electronics went through much the same thing (20% drop), while NAND maker Alcor Micro slid down 30%.

Granted, the Chinese Luna New Year holiday had something to do with this turn of events, since it reduced the number of working days.

Unfortunately, the main cause is still the low demand and its side effects (oversupply and low per-unit price).