Weak end demand is weighing on smartphone and PC contract negotiations, with buyers and sellers still at a standoff. Driven by AI demand, enterprise SSD is poised to be the first to settle quarterly pricing, with sizable increases expected. In the spot market, smartphone brands’ promotional price cuts have intensified seller dumping, pushing prices noticeably lower. Suppliers keep inventory lean and retain pricing power, while module houses face rising inventory and mounting pressure, and CSP procurement is returning to a normal pace.

Key Highlights

• Contract market: Weak end demand and slow inventory digestion have stalled smartphone and PC contract price negotiations. Enterprise SSD, boosted by AI demand and additional CSP orders, is expected to settle pricing first, with sizable increases.
• Spot market: Demand for Chinese smartphones froze after price hikes, and brands are cutting prices during year-end promotions to clear inventory. Sellers have turned more aggressive in dumping, sending wafer spot prices sharply lower.
• NAND suppliers: Inventory remains at historically low levels, and strict production discipline lets them keep their pricing power.
• PC OEMs: Demand has yet to recover and stockpiles are ample, so OEMs are buying defensively and inventory is flat.
• Module houses: Forced to absorb supply released by suppliers in exchange for allocations of components in short supply, they face rising inventory and growing cash pressure.
• Hyperscalers: Inventory at US players edged up while Chinese players trimmed slightly, and procurement is returning to a normal pace.
• Smartphone brands: Price hikes have dampened demand and rising costs are squeezing margins, so brands have turned cautious on purchasing after restocking.

Table of Contents

1. Market Update
2. TrendForce’s View
   • Inventory Levels of NAND Flash Suppliers and Clients in Major Application Segments

<Total Pages: 2>