Barclays Hardware Tracker: NAND Firming, But Overall Weak End Demand

Barclays Hardware Tracker: NAND Firming, But Overall Weak End Demand

Analyst, Ben A. Reitzes, said, "NAND contract prices were slightly up m/m in August given supply cuts initiated earlier this year. Barclays Asia ex-Japan analyst, SC Bae, believes that prices will not get materially stronger given weak seasonal conditions, higher inventory at manufacturers and a delayed build for the iPhone 5 (related to in-cell issue). NAND pricing going forward depends on follow through on announced production reductions from suppliers. Apple (Nasdaq: AAPL) is the most sensitive to NAND pricing in our coverage universe given its exposure in iPhones and iPads."

Other highlighted segments include: 1) We Estimate the PC Bill of Materials (BOM) Fell by Approximately 1% m/m in August; 2) DRAM Prices Decline (Again) Given Weak PC Demand; 3) HDD's - Weak PC Demand Continues to Weigh on Drive Pricing; and 4) Panel Prices Down a Little; Higher ASPs Still Expected: In August, prices for 14" panels fell slightly while 17" and 19" panels remained flat m/m...Our colleagues believe better pricing is still possible in 2H12 given discipline in the supply chain, a reaction to the weak end demand for TVs, PCs and other devices.

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