Micron, samsung and sk hynix will have big losses in Q1 2019
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As reported by the folks at DigiTimes , three of the industry's leading DRAM and Flash NAND memory makers, Micron, Samsung and SK Hynix, are expected to drop their revenues by a staggering 26% in this first quarter of 2019 and 29% annually.. The combined decline in revenue for the three DRAM and Flash semiconductor giants is due to seasonality and declining prices that are suffering from everything to do with RAM and SSD drives.
Bad news for Micron, Samsung and SK Hynix
Manufacturers' revenues were already falling in the fourth quarter of last year and this first quarter of 2019 continues to be a continuation of that trend, although not at these values, but slightly less.
With prices for RAM and SSD drives facing a steady decline, the winds are not blowing in favor of manufacturers but for users. Low prices mean less profit margins for manufacturers, plus we are in the first months of the year, where sales are lower. The main manufacturers expect the situation to improve in the second half.
For Hynix, Samsung and Micron, the main source of revenue in this area was DRAM modules, which accounted for 70% of combined revenue in the fourth quarter of last year, and is expected to continue to be this quarter.
We have been tracking prices for NAND Flash based memories and drives, with sources forecasting that prices will continue to drop throughout the year, although the strongest drops will be during the first half of 2019.
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