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Go slow on sales post Japan-quake

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DQW Bureau
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After the recent href="http://www.ciol.com/News/News/News-Reports/Tsunami-of-info-after-Japan-earthquake/147643/0/">earthquake
and tsunami
in Japan created confusion in the market, the DRAM and NAND flash
memory chip prices are rising. style="background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">
Memory players feel that the market is lucrative for channel partners
due to the surge in pricing, also at the same time they think
partners need to be cautious while liquidating the stock.
Commenting on the current situation MA
Mannan, Country Manager, Corsair Memory India said, “The Japan
tragedy has created an utter confusion in the memory market. As
expected pricing is up in all PC components. Memory being a volatile
market which depends on demand and supply, its pricing is ought to go
up. Hence in this situation we are advising our partners to hold
stocks and liquidate slowly so as to ensure good margins which have
eluded the memory markets for a long time."

Similarly Ajay Kogta, Country
Manager-Indian Sub-Continent, Strontium Technology, asserted,
“There will be an impact on memory supply chain for both DRAM and
NAND Flash. Before the disaster in Japan, high density NAND was
already running short of supply and DRAM was in near balance
situation. The immediate effect has indeed been a scramble to cover
parts by factories, channel partners, OEM manufacturers and therefore
there has been a spike in spot prices.”

He further added, “One thing is clear
that there has been production disruption and supply is affected. So
uptrend in prices is expected to continue in near future. The long
term impact is however very hard to predict as information coming
from Japan is patchy and we don't know whether there has been
damage to upstream factories or just some production disruption.”
Strontium has been supplying to its key
customers regularly and did not let supply shock pass through to the
Indian market. “We advise all our downstream partners to have
patience and continue to participate in the market on a daily basis,”
Kogta added. Rajan Sharma, GM-Marketing and Sales,
GIGABYTE Technology India said, “Japanese industries work on the
Just in Time (JIT) inventory planning system. So 'short-term'
shortages are expected to be very high. Already some hikes in memory
prices are seen in the market. The recovery will be slow, but we hope
China, Taiwan and Korea can increase their output.”

“Traders are minting high margins. We
have seen that the memory card prices have gone up to 25 percent and
it may go further high in coming times,” concluded Vinit Shangle,
National Sales Manager, Simmtronics Semiconductors.

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