Flashchiptutor’s Flash Drive Facts

Consumer Awareness – MP Players – USB Flash Drives – Memory Cards – Flash Drive Education

Flash Memory Prices Are Rising – Digitimes Reveals Why.

Posted by flashchiptutor on September 17, 2009

The FrankenFlash Project has been reporting that prices for memory flash chips are going up, not down. A recent article published by Digitimes on 14 September 2009: Apple demand causing serious NAND flash shortage in Taiwan confirms this. Digitimes reveals why the prices are rising.

digitimes’s reported the following prices:

The average spot price of 16Gb multi-level cell (MLC) chips rose 0.85% to close at US$5.17 on September 11, and the 32Gb part was up 0.5% to US$7.13, according to DRAMeXchange. In the contract market, average pricing for 16Gb chips climbed 7.2% to US$4.48 in the first half of September, and 32Gb went up 4.3% to US$6.80.

For potential sellers and buyers this information is very important to know. Unfortunately a lot of older smaller capacity flash memory chips are being digitally altered to report a size much larger than the actual capacity.

Bit’s and Bytes Math

Memory manufacturers do not refer to memory chips in GB – Gigabytes, they use Gigabits. This confuses a lot of people. Is there a difference? Yes.

It takes 8 bits to make a byte. Therefore in consumer terms you must divide any size reported in Gb, by 8 – this will give you the size consumers are familiar with – GB.

What does this mean for prices?

16Gb multi-level cell (MLC) / 8 = 2GB chip. A 2GB chip costs $5.17
32Gb multi-level cell (MLC) / 8 = 4GB chip. A 4GB chip costs $7.13

spot prices on average are a little lower for “contracts”

16Gb multi-level cell (MLC) / 8 = 2GB chip. A 2GB chip costs $4.48
32Gb multi-level cell (MLC) / 8 = 4GB chip. A 4GB chip costs $6.80

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

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

This means:

2GB rose about 25% since April, 2009: from $4.11 to $5.17 US
4GB rose about 8% since April, 2009:$6.61 to $7.13 US

The April 2009 pricing reflected the increasing costs, much higher than 2008 for the same capacity. While information is not currently available for 8GB or 16GB, you can expect they also rose in price and as they are more recent chips, perhaps a great deal.

Consumers and potential resellers for usb flash drives, mp players and memory cards need to be extremely careful.

Only mentioned are the actual costs of the memory chips. The prices do not include the extras needed actually create a usb flash drive, mp player or memory card. The other parts, labour costs to assemble, modest profit of the manufacturing facility, modest profit of a wholesaling site – for genuine capacity items have been excluded.

If you are a seller thinking of selling please read:

So You Want To Sell On eBay For USB Memory Flash Drive PenSticks – MP Players – Memory Cards? Can You Make An Honest Profit And Sell Cheap? and consult other articles at https://flashdrivefacts.wordpress.com/

Please research and becareful. The FrankenFlash Project and it’s many sites are combating fraud for false capacity memory chips. These are chips reprogrammed to lie about their real size to operating systems. You should always inspect and test your merchandise for it’s true memory capacity prior to offering it for sale!

Read: H2testw 1.4 – Gold Standard In Detecting USB Counterfeit Drives at SOSFakeFlash . If you review the many comments you will know why this software is so useful.

Practice safe selling:

  1. Research your intended product.
  2. Find out what the costs are for memory chips.
  3. Buy from reputable sources.
  4. Test your merchandise!
  5. If flash memory devices fail testing:
  • If it fails testing with H2testw, take the item apart to inspect the memory chips.
  • Visit http://flashchiptech.wordpress.com/ for link information to chip manufactures to decode the chips you found to determine the real size.
  • If it is a brand name product report it to the brand name. Include the source of acquistion.
  • Photograph, document. See http://fixfakeflash.wordpress.com/ and http://sosfakeflash.wordpress.com/ for examples.
  • Take legal action against your acquisition source according to how you paid and the laws of your country.
  • Please do not attempt to sell the false capacity items to reclaim your costs. You only make the problem grow. If you are reported to the project and they investigate, you could find yourself on the internet.
  • You are welcome to report the source of your fake flash memory acquisition to sosfakeflashdrive@gmail.com.
  • Feel free to leave a comment on an article at any of the FrankenFlash Project sites. Make sure to post your testing results along with your testimony for items purchased outside of eBay. This is important. It warns other potential sellers against purchasing from your source!

The FrankenFlash Project is a co founded effort. Fake flash sellers on eBay (victims) and eBay buyers together started the project. It was not founded solely by buyers who became victims of false memory flash chips. Avoid the potential nightmare that comes from buying false capacity memory. RESEARCH YOUR PROJECT. Test items by category before offering for sale. Periodically continue to randomly test your orders. You are quality control. Protect yourself. Protect your buyers.

You can earn money by selling, but expect a modest profit. If you are being offered unrealistic prices, you will receive false capacity items. Digitimes has given some of the current prices and has explained some of the reasons why they are increasing.

Producing high quality flash drive chips, is expensive. There is a lot of overhead – the inspection process for flash memory chips is repeated at various stages during the manufacturing process. It is not only carried out at the end! During the retesting, more and more chips are discarded as they move through the process. These are often the chips that some how end up in fake capacity usb flash drives, mp players and memory cards.

Both resellers and consumers need to be prepared to pay realistic prices. If either or both do not, expect false capacity memory to be the result and the nightmare of consequences that come with fake memory.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: