Major DRAM module makers A-Data Technology and Transcend Information, though seeing their June sales dampened by weak memory pricing, both anticipate improving demand in the second half of 2008.
A-Data explained that its more than 30% on-year sales decline was due to weakening demand and a rapid price drop of NAND flash. The company reiterated a warm outlook, but noted that whether global demand will be affected by a sluggish consumption atmosphere in the US is still subject to further observation. As of June, A-Data recorded a June sales breakdown between DRAM and NAND flash at 57% and 43%.
Transcend, though also posting a sequential sales decline in June, was cited by a Chinese-language Commercial Times in saying that it is confident that second-quarter gross margins should increase to double digits again. Thanks to consistent market share growth, the company reported more sales from NAND flash last month. Its sales breakdown between DRAM and NAND flash in June was 39% and 53%.
Transcend also expects memory demand to recover along with seasonality. More demand is expected to stem from the 3G iPhone from Apple, smartphones and low-cost PCs, the Commercial Times quoted company as saying.
Article translated by Esther Lam
