"NAND Prices Fall 5-10% in 2Q... Rebound Expected in 4Q"

TrendForce Announces Forecast for Average NAND Selling Prices

The average selling price (ASP) of NAND flash in the second quarter is expected to drop by 5-10% compared to the previous quarter, but the rate of decline may slow down. If demand continues along with additional production cuts by NAND suppliers, there is also an expectation that prices could recover in the fourth quarter.

The market research firm TrendForce announced this NAND ASP forecast on the 30th.

TrendForce explained, "Although NAND suppliers continue to reduce production, demand for products such as servers, smartphones, and laptops remains sluggish," adding, "The oversupply of NAND continues." They stated, "NAND ASP will continue to decline in the second quarter." However, they expect "the rate of decline could narrow to 5-10%."

TrendForce holds the view that if the market trend of slowing price declines continues, the fourth quarter could mark a turning point for a rebound. However, they noted, "The key is whether NAND suppliers can further cut production," and explained, "If demand does not remain stable and is weaker than expected, it may take longer for ASP to recover."

Quarter 1 and Quarter 2 NAND Flash Average Selling Price (ASP) Forecast Compared to the Previous Quarter / [Image provided by TrendForce]