Ahead of SanDisk's (SNDK -1.8%) April 16 Q1 report, BofA/Merrill (Underperform) thinks the NAND flash giant could miss both its Q1 and Q2 estimates due to demand and pricing weakness caused in part by an inventory overhang.
Also: Digitimes reports some memory module suppliers are pushing bundled DRAM/NAND solutions to "help ease the oversupply of NAND flash products in the market."
The site adds downstream NAND buyers "have been reluctant to purchase NAND flash in large volumes" due to inventory concerns. At the same time, its sources think NAND prices could stabilize as Apple ramps its orders to SanDisk and Micron (MU -0.9%) ahead of its 2H product launches.
SanDisk outperformed a week ago after Micron reported an 11% Q/Q increase in trade NAND sales, with a 35% increase in bit growth (fueled by mobile and SSD-related demand) more than offsetting an 18% ASP drop.