While contract prices for NAND flash have continually dropped due to oversupply arising from weak demand, prices may rebound in the third quarter of 2012 if traditional peak demand emerges and therefore retail channels will replenish low inventory levels, according to industry sources.

If Apple begins to procure NAND flash in June in preparation for expected peak demand in the second half of 2012, contract prices in June are expected to fall slightly and turn flat in the third quarter, the sources said.

In order to recoup decreased demand for NAND flash-based memory cards and USB drives, memory module makers are promoting sales of eMMC for smartphones, and SSDs, the sources indicated.