Samsung Electronics is trying to stabilize prices for microSD memory cards by selecting customers and orders, according to industry sources.
Samsung decided to discontinue shipping microSD cards to small-size channel distributors, and intentionally control supply in order to stop prices for NAND flash chips and microSD cards from falling further, the sources indicated.
Several small- and medium-size distributors reportedly have been selling the microSD cards and flash memory wafers purchased from upstream chip suppliers at very low prices. Their extremely low price offers have undermined the market, the sources pointed out.
In fact, prices for NAND flash memory have been slipping since 2012 due to weak demand for flash cards and drives. Meanwhile, demand for SSDs has been a disappointment by failing to push up chip prices.
In addition, a number of distributors in China are in danger of going bankrupt due to losses generated from the price falls, the sources observed.