SSD and RAM prices may vary due to Coronavirus

SSD and RAM prices may vary due to Coronavirus

It is difficult to follow the thread of everything that is currently happening in the world with the NAND Flash, a market that in 2019 went bankrupt in terms of prices and from which users were favored.

At the end of last year, measures to reverse the situation began to bear fruit and prices were increasing again, but the COVID-19 It has changed everything and according to sources, prices are under pressure.

China gave the first symptoms, which have spread to the rest of the world

It was at the beginning of this April when China, about to recover from the virus and return "to normal" in its economic and productive sectors, alerted to the drop in prices that its industries were seeing through retailers.

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Fear is a powerful ally and fearful enemy, which is why the first symptoms came just two days after Samsung's hand in a movement that alerted to the danger that the industry was running: it cut SSD inventory. The pandemic was unleashed by the industry and the priorities changed for everyone.

The plans made months before had to be changed, it was not feasible to increase the offer again, so the first step of the industry is to solve the demands of the data centers in an attempt to normality despite the fact that the house was already burning .

Minimum demand increase, inconclusive reports

SK-Hynix-96-Layer-QLC-4D-NAND-Flash-3

The NAND Flash market saw the use of medical devices such as respirators and high-end healthcare equipment drive sales, but it was all a mirage. Demand fell brutally again and the first reports for the second quarter of 2020 came later, where curiously, no analyst agreed on the most immediate future of a key industry sector such as the NAND Flash for RAM and SSD.

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Uncertainty is possibly the worst enemy of a market, it creates fear and investment is held back. Even the green ADATA numbers did not erase the storm and the market is now under pressure that is hard to bear.

If inventory is reduced or cut, the supply is forced to increase momentarily and then decrease, so that prices fall and then, in theory, rise.

64-layer-3D-NAND-flash

If the planned production is maintained, there may be an excess supply, so the price will fall for a longer time and will not rise again after months, but demand is activated for how little there is and it is entered, although these revenues are minimal, but stock goes out.

The solution does not depend on the Asian manufacturers, it depends on the majority of western consumers, who are the big eaters of RAM and SSD, but we already know how Europe and the United States are. The market decision will come, soon, without remedy and we could face either of the two scenarios or even one not specified by analysts.

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The price and stock is an uncertainty that will accompany us for at least a few weeks, after this who knows where the market will go … Place your bets in the comments.


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