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NAND Flash memories follow in the footsteps of graphics cards: their sales are falling 17 comments

The third quarter of this year tumbled the forecasts of some consumer electronics manufacturers. GPU distribution for PC as we explained to you yesterday decreased by 15.43% if we compare this period with the same quarter of 2021. According to JPR consultancy, only Intel is increasing its market share; Those of AMD and NVIDIA have been reduced.

Predictably, however, this market shrinkage isn’t just having a measurable impact on GPU and graphics card manufacturers’ cases; NAND Flash memory manufacturers’ revenue also fell sharply in the third quarter of 2022. And this surge has deeply affected the businesses of Samsung, Western Digital or Micron, among other companies.

NAND Flash chips market shrinks by 24.3%

The curves are coming. The figures handled by TrendForce consulting leave no doubt: the joint revenue of NAND Flash memory manufacturers decreased by 24.3% if we compare the second and third quarter figures of this year. That’s outrageous because we’re comparing two quarters in a row, not 2021 and 2022 revenues. And such a sharp decline cannot go unnoticed.

Average price of NAND Flash memories decreased by 18.3% in the third quarter of 2022

This decrease in revenue is nothing but a reflection of the very significant drop in demand for 3D NAND chips used in the manufacture of storage units for desktop computers, laptops, smartphones or tablets, among other devices. And when demand drops, prices follow. And the incomes of the producers will inevitably suffer.

We come from a two-year pandemic in which the jobs and incomes of consumer electronics manufacturers in general and computer equipment manufacturers in particular have increased at a dizzying pace. But the weak times have already come, and there are no miraculous cures in this area. The makers of these memories had no choice. reduce its average price by 18.3% to blow some oxygen into an industry that started bleeding in the third quarter of this year.

It is enough to take a look at SSD disk prices for PCs in stores to understand that users can already detect this decrease. In any case, the reasons explaining this shrinkage in the NAND Flash memory market overlap with some of the reasons that led to fewer graphics cards being sold.

The most obvious reason for the decrease in the demand for these memories is that fewer computers and smartphones are sold.

In essence, the most obvious reason the demand for these memories has fallen so sharply is that fewer computers and smartphones are being sold. Much less than in 2020 and 2021. This exhaustion of the market responds to a cyclical trend where a large proportion of users do not renew their computer equipment every year. And after a remarkable growth period like the last two years, this market has inevitably reached a contraction stage.

However, that’s not all. Inflation and recession are also wreaking havoc on users’ pockets and many companies’ cash registers, and it is understandable that one of the measures to take in this scenario would consist of upgrading computer equipment only if absolutely necessary. For now, nothing seems to indicate that this trend will change in the short term, so it looks like we’re in a good time to refresh our PC’s SSD. Or to buy a second unit.

Cover photo: Andrey Matveyev

More information: TrendForce

Source: Xataka



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