Why do NAND Flash prices change ?

What is NAND flash ?

"NAND flash" is the type of memory chip used to make USB flash drives and many electrical items such as mobile phones, smartphones, PC tablets, mp3 players, cameras and various other electronic devices. NAND flash memory chips are manufactured by just a handful of companies such as Samsung, Intel, Toshiba, Micron and Hynix to name a few in a variety of capacities and levels of performance.

Why do NAND flash prices change ?

The price of NAND flash memory changes daily in accordance with global supply and demand similar to commodities such as coffee, oil or gold. From the supply side Samsung, Intel, Hynix and Toshiba exercise production controls to ensure the global market is neither oversupplied or suffering any significant shortages. From the demand side, well known companies such as Apple, Sony and Nokia have the ability to influence NAND flash prices as well with their larger sized orders.

The prices USB Canada uses to quote its clients are directly based on daily NAND flash spot prices, since the NAND flash memory chip is the most important component in a USB Flash drive from a cost perspective.

NAND flash memory also may be derived from different memory capacities, which also causes additional fluctuations in the price.