Prices have been falling due to technological innovation, which has improved the capacity and performance of flash memory devices without significantly increasing costs for producers.
Los Angeles, CA (PRWEB) May 18, 2014
The flash memory device market has a buyer power score of 3.7 out of 5.0, with a higher score representing stronger negotiation conditions for buyers. According to IBISWorld analyst Pierre Dessertenne, buyer power is strengthened by buyers' access to a wide variety of comparable suppliers and products and historically decreasing prices. However, rigid pricing from suppliers and the fact that these products are rapidly falling into obsolescence are reducing buyer power.
Due to their practicality and low cost, demand for flash memory devices has been rising, particularly from the rapidly expanding information technology sector. Flash memory is the storage medium of choice used in small electronic devices and for storing large quantities of data in a convenient format. As a result, many suppliers sell flash memory devices for varying uses. Shortages and long buying lead times are therefore extremely rare for flash memory devices. Major suppliers of flash memory devices include Samsung, Toshiba and Hewlett-Packard. Although there are many suppliers in the market, makers of memory chips are less numerous, granting them the ability to control prices, diminishing some buyer power, says Dessertenne. Nevertheless, memory chips, are extremely similar across suppliers and thus offer little potential for product differentiation. Instead, suppliers must compete on price, which pushes their margins down and prevents buyer from negotiating more favorable pricing.
Prices for flash memory devices have been falling consistently for the past three years and are expected to to do so for the next three years. Flash memory devices have increased in performance and capacity for little additional costs. As a consequence, buyers can expect prices per gigabyte to keep falling year after year. For more information, visit IBISWorld’s Flash Memory Devices procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of flash memory devices. Flash memory equipment is used to store digital information in a variety of electronic devices, including digital cameras, mobile phones and laptop computers. Because they are nonvolatile, flash memory devices do not require a power source to retain data. They can also be easily erased and reprogrammed to suit a user’s needs. This report does not cover other types of removable storage media, such as compact disks, digital versatile disks or Blu-ray.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.