Digitimes reports inventories for eMMC NAND flash products have been rising amid weaker-than-expected demand (high-end smartphone and Chinese tablet weakness are blamed). As a result, eMMC prices have slumped and vendors have begun aggressively unloading inventory.
SanDisk (SNDK -0.8%), a major seller of eMMC NAND modules, is off modestly. But eMMC controller supplier Silicon Motion (SIMO +6.3%), whose sales have been pressured this year by tight NAND supplies, is up sharply.
Following a strong start to the year, NAND pricing has come under pressure in 2H. Slowing tablet shipment growth and moderating increases in average NAND consumption per smartphone (caused in part by a mix shift towards cheaper smartphones).