As much as our politicians say, the impact of the Coronavirus is neither calculated nor close to doing so.
The impact of the virus will be of such caliber that it will leave many economies so trapped that they may have to be intervened. Markets are falling inexorably with timid sporadic rises in the stock markets, but widespread fear is stronger than hope for recovery, money is fearful and investors only value stability.
Fear reaches users, consumer sentiment drags demand
The upward trend in prices is not going to be as it seems. The indications since the end of last year with prices non-stop rising due to the adjustments of the main manufacturers regarding their stock since the beginning of 2019, are not going to have the repercussion that they expected for this 2020.
In other words, all austerity measures to force the rise in prices are going to fall on deaf ears due to the Coronavirus hit on the industry. Reportedly from China, prices for NAND Flash devices (SSD and RAM primarily) in the Asian country's retail market have started to show weakness.
The pandemic VOC-SARS-2 It has had an unexpected effect on the markets: demand has fallen due to consumer fear. The paranoia in China is of such caliber and the fear of the economic impact is of such magnitude that even the strong economy of the country is suffering once past quarantine, something unheard of.
Samsung cuts its SSD inventories
The concern throughout the Asian continent is such that the first movements have begun to occur: Samsung cuts inventory of its SSDs.
This has been a badly received movement by the markets of NAND Flash, since the fact that the second semiconductor manufacturer in the world launches a mitigation measure of this caliber can only mean a drop in prices that they are not willing to assume.
In 2018, it was one of the first shock measures against the crisis experienced by the sector and which favored us so much in its day and now, after the Coronavirus, it seems that they are reintroducing, since the uncertainty at work makes us cautious the buyers.
A lot of supply and little demand will be the trend apparently in the rest of the world, since in both Europe and the US the number of jobs that will be lost will be gigantic, which will again bring another economic recession driven by the debt that the countries are going to have to assume.
In this case, it is of little use that prices fall if many people are going to lose all their financial support, so it is not surprising that the NAND Flash sector copies the measures of Samsung and becomes defensive again against this new problem.
