Flash nand's global revenue drops dramatically

A recent report from DRAMeXchange revealed something disturbing, worldwide revenues from NAND flash technology decreased considerably in the first quarter of 2019.

All NAND providers have lost revenue, some more than others

The loss in revenue appears to be primarily due to the fact that original equipment manufacturers of servers and smartphones saw demand for their products weaken in the fourth quarter of 2018 and then adjusted down their inventories of NAND flash modules in the first quarter of this year.

The prices of eMMC / UFS contracts, customer SSD and company SSD fell by 15-20%, 17-31% and 26-32%, respectively, in the first quarter of 2019. TLC wafer contracts also fell 19-28% quarter-over-quarter, even though the decline slowed compared to the previous quarter.

DRAMeXchange believes that while smartphones, servers and laptops will see a recovery in the near future, downward pressure on prices for NAND flash products will continue.

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NAND flash providers saw ASPs drop 20-32%, with Intel and Western Digital on the low side and SK Hynix on the high side. Intel also experienced the smallest decrease in revenue (17.3%), followed by Micron, which experienced a decrease in revenue of 18.5% in the first quarter of 2019. At the other extreme, SK Hynix's revenues decreased further one third (35.5%).

Finally, previous DRAMeXchange reports indicated that SSD prices would continue to decline for the rest of the year, although the decline could slow down towards the end of the year. Prices are expected to drop below 10 cents per GB. This is very positive for consumers as it means lower prices for SSD drives.

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