The new coronavirus pneumonia global pandemic impact the storage industry

The new coronavirus pneumonia global pandemic impact the storage industry

Coronavirus puts a bad impact on all industries worldwide. Today, DRAMeXchange released an analysis that states that although the pandemic disease is decreasing in China. It has spread rapidly in the Middle East, Europe and the United States.

The World Health Organization (WHO) has officially announced that new coronavirus pneumonia has become a global pandemic infection. Disease, which will put the global economy in systemic risk. Coronavirus is likely to cause the memory market to rebound and enter into a recessionary period.

The analysis suggests that from a demand perspective, the new crown pneumonia epidemic will have a profound impact on economic and social activity. Further affecting the ability to use it personally. However, the reduction in delivery of terminal products will inevitably lead to a decrease in memory demand.

In particular, average prices for DRAM and Flash memory will continue to increase in the first and second quarters of 2020. Primarily due to lower client list levels at the beginning of the year. Although the price trend is increasing due to coronavirus.

According to Trend Micro Consulting, the real challenge will begin in the third quarter. With demand shrinking, acquiring it will not be easy, which will significantly weaken the client’s purchasing power. Coronavirus suppresses the price rise and is likely to increase as the flash memory field falls.

At present, the three major terminal products affecting memory and flash memory are notebook computers, servers, and smartphones. Of these, smartphones will face the biggest drawback.

The supply of memory and flash memory will be limited in 2020 according to Trend Micro Consulting. The annual growth rates of only 13% and 32% and most consumer inventory levels are low. Therefore, it was originally estimated that price increases could continue until the end of this year. However, with structural changes in demand, starting from the end of the second quarter, the purchasing power to pull inventory will shrink, affecting the price trend in the second half of the year.

There is a huge difference in the actual supply-demand in the memory field. Even if the demand is downward, there will still be a gap between supply and demand. Therefore, the most disappointing forecast is that the growth rate will change in the second half of the year. But will not increase.

In contrast, the distinction between supply and demand is not significant in the flash memory field. The weak customer demand is seen in the second quarter. If demand continues to be revised, prices may drop in the second half of the year

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