Channel not deeply affected by flash card price hike

The prices of flash memory cards have shot up by 20 percent last month in the
international market due to the increasing demand of the memory products and a
shortage in its supply. It appears that the increased sale of Apple i-phones has
led to the considerable increase in demand of memory cards worldwide, and this
has disturbed the demand and supply chain.

Now the question that arises is how this will impact the Indian market with
respect to vendors and channel partners?

On the vendor side, due to the higher demand and slashed supply,
manufacturers like San Disk, Integral and Kingston have increased the prices of
all the memory products by 15-20 percent. Also, if the prices continue to rise
in the next four to eight weeks, the manufacturers could start stocking it, and
that will further increase the price in the market.

Vendors felt that slight ups and downs do not affect the business of channel
partners in anyway, because they keep a fixed price for the memory cards so that
the partners are untouched by this move.

Manisha Sood, Country Manager-India and SAARC, SanDisk	Rajesh Paniker, Country Manager, Kingston

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