Falling prices for flash memory prompted chipmaker Intel Corp to trim its first quarter gross-profit projection slightly yesterday, driving share prices down nearly 3% in after-hours trading, reports Bloomberg. Analysts said oversupply for NAND flash chips—used in cameras, music devices, and mini-storage devices—would likely persist into the third quarter, keeping prices soft.
Intel launched a joint venture with Micron Technology in 2006 to manufacture NAND chips. Analysts also worry that slowing demand from companies like Apple could continue to hurt Intel’s core business of computer processors. Intel closed at $20.01 on Nasdaq, but dropped to $19.41 in after-hours trading following the revised projection.