The collusion between the major chip makers to increase their market share through price cuts failed to produce the results that the chip makers anticipated. This failure to deliver a knockout blow to the minor market chipmakers has prompted the flash drive chip manufacturers, Samsung, Hynix and Intel to reverse course and drive prices back up through the reduction of their manufacturing capacity.
John Graham of Blue Loyal flash drives declares “ For the past year we saw a reasonable and steady decline in the prices of flash drive memory from Samsung, Hynix and others. These savings allowed us to pass the new lower prices along to our customers. Now we have had to change prices on a daily basis by as much as 3-5%, in the past 2 weeks prices on some sizes of flash memory have risen by as much as 87%. We expect the price increases to come to a halt when Chinese New Year takes place next week but we have no idea as to what the price are expected to be after the Chinese national holiday”.
Flash drives are the #3 selling item in the U.S. and European promotional products market. Sales to the promotional products marketplace are expected to top 3 Billion USD in 2009. Combined retail and promotional logo flash drive sales are expected to reach 10 Billion USD in 2009. If the current price increase to flash drive chips stays steady it is expected that the overall market valuation could increase by 9% to the above stated figures.
Blue Loyal is a North American based company with flash drive manufacturing facilities in Shenzen China. Blue Loyal and its brand Flash Drive Direct are one of North America’s leading suppliers of flash drives to the promotional products industry.
John Graham
john@blueloyal.com
604-272-8809
Vancouver BC Canada
John Graham
778-338-3908