A-Data Technology anticipates its DRAM business to outperform sales of NAND flash products in 2007, said company chairman Simon Chen.

Chen estimates that revenue breakdown between DRAM and NAND flash products will be 2:1 for the company in 2007, versus the present 7:3. He projects DRAM prices to maintain stable at contract market through February, but starting from March, the outlook is not yet certain. For the spot market, Chen said DRAM prices should stay strong in January. Regarding the long-anticipated Vista impact, Chen noted that meaningful impact will likely be seen after the first quarter of 2007.

NAND flash prices, on the contrary, are still subject to further drop under the pressure from that major consumers, such as Apple Computer, will reduce orders in the first quarter of 2007. However, according to Chen, prices will drop within reasonable limits that should still guarantee gross margins for memory-module houses. The situation with prices plummeting, as that happened in the first quarter of 2006, will unlikely repeat, he emphasized.

By: DocMemory
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