Memory maker Transcend Information has warned that while the market for DRAM products is still tight due to a chip shortage, it is still racking in the cash. In a press release the outfit said that it expects to register a sequential revenue increase in the second quarter of 2010 despite it being a low season.

Part of the reason for this is that demand for smartphones and tablet PCs is warming up the market for NAND flash memory. The other thing is that because there is a shortage of NAND prices are holding steady or rising.

The company added it is working closely with local channel distributors in emerging markets, Japan, Europe and the US for its own-brand flash drives and memory cards.

Transcend said shipments of its strategic products are growing steadily. However Transcends joy might not be shared by those who want to buy the latest NAND based gear. It is fairly likely that prices for the gear will rise.