|Samsung cutting back 3-bit output, AAPL MLC demand picking up, positive for SNDK|
Well, the price chart trend from iSuppli article doesn't seem to indicate that Samsung is cutting back on TLC production because the significant price difference persisted throughout the quarter rather than TLC pricing moving a bit closer to MLC pricing. This would have happened if Samsung had moved away from TLC and supplies were tight.
Based on what Sandisk has said in the past, TLC is about 17-20% cheaper to manufacture per bit. So, there is one more possibility- it is possible that Sandisk and/or Toshiba (most likely, Toshiba) have enough spare capacity for now, that for excess supplies, they are passing on most (but, not all) of their cost savings to their customers for strategic reasons. If other manufacturer's are having difficulty to get TLC quality comparable to Sanshiba's quality, this might discourage others to add more capacity because of the fear that Toshiba/Sandisk can dump a lot of TLC that is reasonably comparable to others MLC, at prices below MLC cost for others and others could lose money!
No one else produces it, as far as I know. Also, your comments in the post I am replying to seem to contradict somewhat your comments in this post:
Nope, no contradiction. Those comments were made in April wrt to TLC/MLC pricing. TLC in Spot markets is expected to sell significantly below MLC prices during times of excess supplies. If there is a real shortage, TLC chips could sell close to MLC chip prices.
All that said--it is good to hear from you, Pam, I hope you have time to give us the benefit of your thoughts over the next few weeks!
I would like to but just can't find time these days! My commute is just horrible and I am extremely busy at work.