SAN JOSE, USA: OEMs face problems looking for parts as the supply of DRAMs and NAND flash memories is quite deficit currently. During downturn, many chip makers found it difficult to buy orders while during upturn they face supply chain shortages which include analog, NAND and DRAM.

Daniel Amir, an analyst at Lazard Capital Markets stated in a report,” On the basis of recent checks conducted throughout the supply chain it is found that DRAM remains deficient throughout the industry. PC and server demands are leading to higher prices. We anticipate 2Q to continue seeing positive DRAM demand. We consider that DDR 3 pricing will rise up by 5-10 percent in the month of April.”

NAND is also in very high demand, on the basis of checks; SanDisk is not supplying NAND chips to any second-tier card maker and is instead supplying packaged cards via its white label business.

He also said, “Together Samsung and Toshiba shall supply chips to just selected clients because of supply constraints. With the return of Apple in the market, such constrains shall continue to gain traction”.

Pricing is another major issue. He said, “We are anticipating flat pricing by April though the latest checks suggest that this pricing might increase for 2Q’ “ Apple has raised its iPad orders and shall refresh the iPhone as always during summer and thus start ordering flash in May.

Joseph Unsworth, an analyst with Gartner Inc., in a recent report said, “There are others who have a different point of view. “Current channel checks specify that buying activity accelerated because of some main clients in an effort to refill exhausted inventories,’’.

The questions whether will Apple Inc.'s iPad impact prices? ''NAND clients should be cautious of the ambiguity in the market, particularly with the current introduction of Apple's longed-for iPad,'' he said.

Unsworth's recommendation: ''Gartner still maintains that there would be business opportunities, but clients will have to be meticulous and tactical in their buying manners to secure good prices.