iSuppli said NAND price to hit bottom soon. NAND prices have been sliding throughout 2006 due to over supply and weaker-than-expected demand from the MP3 market.

With customer inventories drying out, such low pricing is expected to trigger a wave of buying at the start of the third quarter. While NAND prices will continue to decline, conforming with historical trends in the market, the rising demand will bring improved revenue and profitability for suppliers.

Concerns over the health of demand have been intensified by several weak readings in the US consumer confidence index. This directly relates to NAND sales, given that demand is extremely consumer oriented and follows consumer seasonal buying patterns. With consumers facing rising energy prices and increasing interest rates, they may have less money to spend on electronic goods that use NAND flash memory.

By: DocMemory
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