There has never been a better time to purchase branded memory sticks. Several factors have come together to make the perfect storm allowing the sharp fall in Branded Memory stick prices. The two primary drivers are a six month high for the UK Pound against the US Dollar and an over capacity of flash memory in the Far East.
The exchange rate has continued to improve given that it hit a 14 month low in May. Since that time, Sterling has risen by more than 11 percent, due especially to the stronger than expected news about the UK economy and the austerity plan put in place by the new government. Investors who bet against the UK Pound have been forced to unwind their deals, which helped to push the UK currency higher.
This has also been helped by the fears that the US economy may not be doing as well as investors had hoped.
Why is this important for the price of branded memory sticks? In short, almost all Flash chips used for Branded Memory sticks are manufactured in the Far East and the US Dollar is the preferred method of payment. Branded Flash Drives are more susceptible to short term currency movements because orders are placed on factories and paid for as customers confirm their requirements. Whilst some forward buying of stock does take place the wide range of styles, colours and memory sizes coupled with the fact that many customers take advantage of pantone colour matching the body of Memory Sticks it is impossible to forward buy too much.
With the improvement in global transportation and the ability to manufacturer and ship within a few days rather than weeks more Branded Flash drives are manufactured to order, hence why currency variation has such as dramatic bearing on price.
There is also a lull in the manufacturer of electronic items, which has reduced the price of flash chip, the core cost for any Branded Memory Stick.
So will this last? Whilst all the underlying factors are improving the currency rates have been so volatile over that past months that it is difficult to predict whether this will continue on an upward trend or in fact fall back again.
What is certain is that the demand for flash will increase over the coming weeks in preparation for the Christmas trading period and this will drive the price of flash up. Especially for 1Gb and 2Gb memory sticks.
So if you are thinking of purchasing Branded Flash Drives, anytime over the coming months, then it may be prudent to secure today’s price as there is no telling how long the perfect storm will last.