Adata expects memory prices to rise due to coronavirus

ADATA expects the Coronavirus to be contained and not just for the obvious reasons. President Simon Chen is apparently optimistic that prices for DRAM and NAND flash technologies will rise this year once the virus is under control, according to a DigiTimes report Monday.

Coronavirus could increase the prices of NAND memories

Chen expects the growing demand for memory products to resume in June if the virus is contained. That despite concerns about the Coronavirus impacting demand in the first quarter. According to DigiTimes, Chen said that while he expects the outbreak to affect first-quarter numbers for physical retailers, the strong growth of online retailers will help make things positive. NAND memory prices have risen 30-40% since the fourth quarter of 2019, DigiTimes said.

China extended the Lunar New Year holiday until February 2 to help contain the virus. Manufacturers of RAM that "were originally expected to enjoy strong order demands after the holidays, are now likely to delay shipping, " the publication added.

At the end of 2019, ADATA's monthly revenue from SSDs more than doubled year-over-year, representing more than 30% of its total revenue. The report notes that data centers have begun replenishing their inventory, while high-end computers and smartphones are expected to increase demand for SSDs at the same time. This could lead to potential supply problems for NAND flash products in the first half of 2020.

Visit our guide on the best SSDs on the market

Finally, Korea-based SK Hynix is said to have plans to reduce its capital expenditures (CapEx) by 2020 due to market uncertainty over the Coronavirus. We will keep you informed.

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