NAND bit output is higher than expected thanks to steady yields on 64-layer 3D NAND production, but demand has been hit by the US-China trade war, the shortage of Intel CPUs and lower than expected iPhone sales.

Even the eMMC/UFS sector, which had a steep price decline in 4Q18, is are expected to fall another 10% in Q1.

SSD contract prices are also expected to fall by nearly 10% in 1Q19.

Module makers have abundant supplies this year but, with falling prices, they  need to clear their inventories at the end of each month to cut loss.

They are suffering declining profitability.