Chip manufacturers are set to experience a significant decline in product prices at a pace “faster than expected.” NAND chip prices are expected to drop by a quarter in the first quarter of 2006.
The South Korean technology company Hynix also predicts that the price of this type of flash memory chip will be reduced to half by the end of 2006.
Previously, many technology experts had commented that the market for memory in mobile devices such as cameras, mobile phones, and MP3 players would stabilize this summer. However, Park Young-joo, an analyst at Woori Investment, stated: “NAND prices will remain low at least until the end of the second quarter. But Hynix will still achieve high profit margins from that chip line.”
The NAND market experienced a growth rate of 65% and generated revenue of $10.6 billion in 2005. Hynix currently holds the third position among leading flash memory manufacturers with a market share of 16.8%. Samsung remains the leader with a commanding 50.4% market share, followed by Toshiba at 19%.
