“The decline in memory pricing has intensified” and Intel expects a further drop
It’s no secret that memory pricing has crumbled over the course of the last twelve months. Prices for SSDs, and even RAM, are hitting the floor, and companies like Samsung, SK Hynix, and even Intel are starting to feel the crunch on their revenues. The latter just wrapped up its Q1, 2019 earnings call, and CEO Bob Swan suspects the memory price crash is only going to get more severe as the year unfolds.
“Our conversations with customers and partners across our PC and data-centric businesses over the past couple of months have made several trends clear,” Intel CEO Swan says (via SeekingAlpha). “The decline in memory pricing has intensified.
“We are also anticipating an incrementally more challenging NAND pricing environment,” Swan remarks later in the call.
Intel’s Non-volatile Memory Solutions Group was down 12% for the last quarter, by far the largest percentage downturn for any of Intel’s divisions year-over-year. But NAND flash revenue accounts for only $1bn of Intel’s revenue, drastically less than its client and datacentre CPU businesses manage to scrape by every three months. Samsung, however, is not so lucky, and its profit has already plummeted 60% in Q1, 2019 - in large part thanks to the worldwide memory oversupply and price crash.
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