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What is happening to Flash drive prices.

The reason for the recent price increases is not so much the exchange rate.

The last quarter of 2008 saw a large drop in flash drive prices.
Due to the economic downturn a lot of producers did cut their production capacity. And with the Chinese New Year a lot of workers in the flash drive industry were fired.

On top of that Qimonda AG, one of the larger manufacturers of flash drive chips filed for insolvency.

Demand is now higher than supply which pushes prices up.

We don’t expect the price to come down quickly however it should level out as demand falls.

Flash drives

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