The retail prices of thumb drives have dropped enormously. Sandisk, who last year had 40% of the market, has postponed plans for a new factory. An excerpt:
The NAND flash market has been so bad that the creator of the chips, SanDisk, on Monday reported a surprise loss of US$68 million for the second quarter. The company blamed the supply glut for its problems, pointing out that it sold a record amount of flash, 120 percent more than the same time last year, but that prices are down 55 percent compared to then.
Sandisk opened its first Chinese factory in Shanghai last year — but fierce competition has driven profit out of USB drives. Sandisk cut costs last year as well.
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