And is that, in case you didn’t know, when a business is reporting income that is lower than expected for it, that is “loss”. Let’s take an example: a company has a forecast revenue of 1,000 million, and at the end of it, enter “only” 800 million. For them, it’s not that they went into 800 million but that they “lost” 200 million, and in many cases this has even had repercussions on staff cuts.
For this reason, the current situation could lead to the exact opposite of what one would expect: if the price of Flash memory goes down, it makes sense that the price of products that rely on it goes down, but like manufacturers reported “losses”, The opposite may be the case, and flash memory products may increase in price.
The price of flash memory and the revenues of manufacturers
From a revenue-sharing perspective, Samsung is still strong with revenue of $ 4.8 billion and 5.9% growth from the previous month. Kioxia experienced strong growth, earned over $ 3,100 million and that translated into 24.6% revenue growth. However, other manufacturers which include Western Digital, SK Hynix, Micron, and Intel have all fallen, especially Intel with more than a 30% reduction in revenue.
One fact to be aware of here is that since SK Hynix’s acquisition of Intel’s flash memory division is not yet complete, they are still listed separately; If it had been done at this point, SK Hynix would be the third highest-earning manufacturer in the world, although these would continue to be “losses” as we have already commented.
In total, we have for example that WDC (Western Digital) seized almost 2,100 million dollars, while SK Hynix exceeded 1,600 million in turnover. Even Intel, which fell the most from last month, entered 1,153 million thanks to the Flash memory division it sold to SK Hynix, so the losses as such did not had no companies.
Will the price of SSDs and RAMs rise or fall in 2021?
Considering the situation that we have explained to you, it is difficult to know. Most likely, the price of SSDs and other flash memory-based products will drop, as their cost of manufacture and purchase price by manufacturers has been reduced. The fact that several of the major manufacturers have seen their revenues decline doesn’t mean that it has in all of them, and it is in fact that Samsung and Kioxia, which are the ones that have entered the most, have a very positive result ( especially Kioxia).
So, unless all flash memory manufacturers agree to maintain or increase the prices, which seems unlikely because after all they are competitors, in principle RAMs and SSDs should drop in price for this year. next.
