Memory chip makers can’t seem to catch a break. Just when it looks like the market might be settling into a groove, something happens that sends revenues spiraling downwards. That was certainly the case in May, in which DRAM companies like A-Data, Transcend, and others are expected to post revenue drops of 10-20 percent sequentially, industry sources say.
This time around it was weak demand in the U.S. and Europe both for memory cards and USB drives that caused revenues to slip so steeply. If there’s a silver lining, it’s that module makers expect revenues to rebound in June. In addition, Apple is getting ready to restock its inventory, which in turn should push NAND flash pricing higher than it has been.
As for April, PQI was hit the hardest with a 43.2 percent decline in sequential revenue. A-Data was next in line with a 23.3 percent drop, while Transcend saw revenue numbers drop 20.6 percent. Looking at revenues one year ago, both A-Data and PQI revenue reported growth of more than 50 percent in April.
Image Credit: Tomshardware
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Tough Month for Memory Makers
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