What Are The Real Costs For Flash Chips In China? Guide 2009

What are the real costs for flash chips in China? The average current prices for 1GB, 2GB, 4GB, 8GB and 16GB are here for you to review. This is your yardstick to judge if you are buying true capacity or a fake. Beware, protect yourself from fraud. FlashChipTutor reveals information both consumers and resellers need to know.

Why are many consumers and resellers ending up with fakes and Counterfeits? Outraged, they might be when they discover the truth. Have they really been cheated?

FlashChipTutor’s answer to this question is both no and yes. The sad reality is that buyers are getting a flash chip at a realistic price with a usual markup that includes the device: MP Player, USB Flash pen stick, memory card. They are being cheated in terms of what is advertised and what is actually given.

Supply and demand. If there is no demand, the supply in false capacity will stop. There is a demand for cheap prices, so flash chips are altered to present the desired capacity people want. Some call this upgrading, others call this changed. In any case the chips have been digitally altered to lie about their real size. For flash USB Memory drives and memory cards this leads to data loss. It happens when you exceed the real capacity of the flash chip.

This practise is no secret in the Orient, in fact it is common knowledge. In other parts of the world it is not widely known. Yes, everyone knows about watching out for used cars, or checking the teeth of a horse from a trader, but few expect this sort of thing to occur for recent technology. This naivety is exactly what fake flash sellers capitalize on.

Do resellers know the dirty secret for flash devices at unrealistic prices? Some do, others don’t. The ones to pay the heaviest price are consumers, not only do they lose money, they suffer the consequences of data loss and what that means. Do the fake flash sellers care? No. From their point of view, you are getting exactly what you are paying for! Note, the emphasis is – what you are paying for!

So everyone in the Orient is a crook, right? WRONG!

Honest businessmen in the orient are as frustrated as we are. They struggle to do honest business, to keep their integrity in difficult times. It is an almost impossible challenge as people race to the fake flash sellers blinded by the cheap prices. Knowing what will happen to these buyers there is little they can do. All they can do is promote awareness of the truth and hope someone will pay attention.

Recently yoyo22, published: about fake USB flash drive and memory card

yoyo22 explains:

Do you know what the fake USB flash drive or memory card means? over here,fake is not the copies or replicas.the chip is “upgrade”,which mean that the chip is only 1gb,it is shown on PC 4gb or 8gb even 16gb.

Fakes USB flash (whole same package to original)

1G changed to 2g -price same to real orignal 1GB
1G changed to 4g -price same to real orignal 1GB
1G changed to 8g -price same to real orignal 1GB
2G changed to 4g -price same to real orignal 2GB
2G changed to 8g -price same to real orignal 2GB
4G changed to 8g -price same to real orignal 4GB
8G changed to 16g -price same to real orignal 8GB

now i am in china,the memory chip’s price is not cheap ,actually.my supplier told me coz the economic crisis,most of the factories can not store too much products.unless get a order,they will manufacture it .

here i dont find the 32gb memory chip.so i feel,any chinese suppliers who offer 32gb usb flash drive ,whose price less than USD60,it must be a “upgrade” fake.

the price of 16GB is more than RMB200.00 (USD1.00=RMB6.80). as i known,1gb memory chip is more than RMB23, 2gb chip is more than RMB28, 4gb chip is more than RMB45, 8gb is more than RMB90. and the 16gb’s chip is not good enough,my honest supplier told me it is with many problem.

so every body ,take care of the fake usb flash and memory card.

yoyo22 has done his part to warn everyone with his information. The FrankenFlash Project recognizes his contribution to help the Global Community understand.

So from yoyo22’s information, in US Dollars these are the fair prices for flash chip by capacity:

1GB = 3.38
2GB = 4.11
4GB = 6.61
8GB = 13.23
16GB = 29.41

In some cases a flash based device can have two chips working together to give you a larger size under a controller. The information reported by yoyo22 is in line with the prices reported by Dave in USB Flash Drives Best Price Bargains Fair Value To Sell Or Buy 8GB 16GB 32GB

Currently it seems the 16GB chip produced in China is not considered completely stable, remember it is relatively new and like with any new technology it needs to be worked on – bleeding edge, is exactly that.

So are you a consumer who fell into the fake flash pit with a usb flash drive, memory card or MP Player? Are you a reseller now sitting on a large inventory you can’t sell without breaking the law and hurting buyers? Do you feel foolish?

Did you make the wrong assumptions about pricing, thinking it was “cheaper” because you were cutting out the middle men? Well you are NOT alone. Members of the Project fell into the fake flash pit before you did – it is why they are trying to do something about it. It’s getting too crowded down there! Standing room only now.

If you are planning to buy any flash based technology as a consumer or reseller, please use the pricing guidelines provided by yoyo22 and Dave.

Do not make the mistake of thinking prices for flash chips will go down. They will not. The manufacturing costs can not go any lower to produce a quality chip, they are already at the lowest they can be. Do not think because of the current economic issues world wide that they will drop. Because of economic conditions, manufacturers can not take any more losses. Production is stopping at many manufacturing facilities while the current stock pile inventory is being cleared instead.

See:

• New! NAND Flash Market: Spot Prices & Outlook 2009
• Toshiba to Adjust Production of NAND Flash Memory in Yokkaichi
• Toshiba, SanDisk to cut Nand flash production
• NAND flash memory market status worse than expected

If you are an eBay Buyer please use the pricing guidelines for size capacity and factor in the cost of the device and casing. If you are an eBay Seller buying from a wholesale site in the Orient becareful of low prices – you don’t want to join the sellers on the list at SOSFakeFlash.

Trade with honest businessmen and prepare to offer fair prices to receive genuine merchandise. The only Klondike is for fools gold – false capacity.