Memory prices will be moving upwards.

Implications: A primary factory in many products from phones to computers and all the hand held devices in-between is memory. What could be the effect of this report.

Analysis: It is interesting to note both DRAM and Flash are moving upwards. Part of this could be an increase in demand from Apple for the new iPhone that is now shipping to dealers worldwide. This new phone would be a large user of DRAM, then Apple also move up production of iPods as they will be using them for a back to school promotion. Both HP and Dell are doing well. Then another is that some of the supplies have closed down lines.

It is the end result that is of concern. As Memory moves up, the cost of manufacture moves up and therefore, profits move in the opposite direction. Also noted in the article is lead times are starting to move outward. While still short as they move from 2 to 3 weeks, it is another indicator of the demand cycle and the possibility more pressure on prices in the near future.