Power Outage Could Affect Price Of Smartphones & Tablets

Toshiba was forced to suspend production on its line of NAND flash memory chips at its Yokkaichi factory in Mie prefecture earlier this week due to a power failure. This factory is used solely to produce chips that are used in smartphones and other gadgets.

This outage will likely affect the company's output of NAND flash memory used in tablets and smartphones. Despite the fact that the factory was set to resume normal operations by the end of the week, Toshiba has said shipments of NAND from the Japanese plant could be cut by up to 20 percent in January and February.

If shipments are lower than expected, it's possible this power outage could affect the price of NAND memory used in some of our favorite mobile devices such as smartphones and tablets. Toshiba is the world's No. 2 NAND chipmaker after Samsung.

"There could be an increase in prices. We've heard Apple's demand for flash in 2011 is going be up 100 percent over 2010 so this is a bad time to have a shortage," said Kevin Cassidy, an analyst at Stifel Nicolaus.

Higher NAND prices are likely to be passed along to the consumer, which means the price of a new smartphone or tablet could go up as well.

"If flash memory pricing goes up short term because of these supply shortages then it's going to make the new tablets being introduced more expensive because all the tablet guys will just pass on that pricing," said Krishna Shankar, an analyst at ThinkEquity.

Via:  Yahoo
countcristo 4 years ago

This is nuts. 100% for flash demand increase by Apple alone? Tablets are just coming out too. Oh well, I don't plan on buying anything with flash mem for a while.

Dave_HH 4 years ago

This just smacks of price jacking. A power outage? I don't know... I think demand is so strong Toshiba and others need to figure out a way to make more profit.

realneil 4 years ago

[quote user="Dave_HH"]This just smacks of price jacking. A power outage? I don't know... I think demand is so strong Toshiba and others need to figure out a way to make more profit.[/quote]

You may have a point there Dave,

I remember years ago that a "fire" that destroyed a factory in Taiwan, adversely affected DDR memory prices all over the world for a time. Seems that all of the factories in other parts of the world had closed their doors, because they couldn't compete. Then, all of a sudden, there is a "fire" and we were all screwed for a lot of money, for a long time. Prices had been very low prior to the "fire" at that time too. I think that they got a brand new factory with the latest equipment out of the deal, and we got to pay for it.

This makes me wonder what will happen to all of the electronics based markets if China flexes it's muscle and takes over the factories in Taiwan? They could interrupt all shipments or start restricting who gets technology from the island at will. It's in their backyard, so to speak and it is their territory technically speaking.

We'll have to see what happens,.....

dodgers2213 4 years ago

we'll just have to keep hoping China doesn't do that Confused

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