Global Price Increases on Flash Memory...

Global Price Increases on NAND Flash Memory (used in USB’s, SD and Micro SD Cards)
 
Over the past 15 months, the costs of NAND Flash Memory (as used in USB Flash Drives, SD Cards, Micro SD Cards and other storage devices) has been rising rapidly.
 
In addition to USB Flash Drives, NAND Flash Memory is also used in items such as Smart Phones, Tablets, Computers, plus any other electronic device you can think of.

There are 3 x main reasons why the costs of Flash Memory has been increasing. These are:

  1. Increase in demand for NAND Flash Memory Globally. There have been huge increases in demand for this memory. This is driven by factors such as Apple iPhone 7 launch, and China demand for Chinese brands of smart-phones for China internal market (this China market is huge!)
  2. Supply issues caused by switch from 2D to 3D manufacture process.  All of the NAND Flash Memory manufacturers are switching their manufacturing process from 2D to 3D. (This allows them to create larger storage capacity in smaller space). This is what the market is demanding - to create smaller, faster and more intelligent gadgets. During this transition – there is a time lag and manufacturing issues are causing a shortage in supply. This shortage in supply, is on top of increase in demand mentioned in Point 1.
  3. Currency – and the Devaluation of the Pound.  NAND Flash Memory is a commodity product, and is traded on international markets in exactly the same way as coffee beans, gold, oil etc. It is traded in US Dollars. As we all know, the GB Pound has fallen by approx. 17% against the US Dollar since Brexit. This 17% increase is on top of the of the massive cost increases caused by supply and demand issues.

Please see below links to articles in Computer Weekly and Tech Target magazine covering this issue.
 
Computer Weekly: Increase in NAND Flash Causing Global Cost Increases
 
Tech Target: Supply Issues in NAND Flash Causing Global Cost Increases
 
Here at Student Essentials we understand the importance to your retail effort to be able to offer “best value” to the students. It is this “best value” that will produce best sales for you. This is central to our thinking. You will always receive our very best prices to allow you to offer the very best retail value to the students and generate strong sales going forward. We hope that the above goes some way to explaining about the recent cost increases.

 

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