your sales are plummeting

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The third quarter of this year has upset the forecasts of some manufacturers of consumer electronics. As we explained to you yesterday, the GPU distribution for PC decreased by 15.43% during this period if we compare it with the same quarter of 2021. According to the consultant JPR only Intel increased its market share; those of AMD and NVIDIA were reduced.

As one might expect, however, this market contraction isn’t having a measurable impact solely on the coffers of GPU and graphics card makers; The income of NAND Flash memory producers has also fallen sharply during the third quarter of 2022. And this lurch has had a profound impact on the business of Samsung, Western Digital or Micron, among other companies.

The market for NAND Flash chips has contracted by 24.3%

Curves are coming. The figures handled by the consultant TrendForce leave no room for doubt: the joint income of the manufacturers of NAND Flash memories have decreased by 24.3% if we compare their figures for the second and third quarters of this year. It is outrageous because we are not comparing the income of 2021 and 2022, but rather what they have obtained for two consecutive quarters. And such a sharp drop does not go unnoticed.

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The average price of NAND Flash memories has decreased by 18.3% during the third quarter of 2022

This decrease in its income is nothing more than a reflection of a very notable decrease 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 falls, prices follow suit. And manufacturers’ revenues inevitably suffer.

We come from two years of a pandemic during which consumer electronics manufacturers in general, and computer equipment manufacturers in particular, have seen their business and revenues inflate at a dizzying rate. But lean times are already here, and in this area there are no miracle cures. The manufacturers of these memories have had no choice but to lower its average price by 18.3% during the third quarter of this year with the purpose of insufflating a bit of oxygen into a sector that is beginning to bleed to death.

It is enough to take a look at the price of SSD drives for PCs in stores to realize that users can already perceive this drop. In any case, the causes that explain this contraction in the NAND Flash memory market coincide with some of the reasons that are leading to fewer graphics cards being sold.

The most obvious reason why the demand for these memories has decreased is that fewer computers and smartphones are being sold.

In essence, the most obvious reason why 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 derived from the fact that a large part of the users do not renew their computer equipment every year. And after a period of growth as remarkable as that of the last two years, a phase of contraction in this market has inevitably arrived.

However, this is not all. Inflation and the economic recession are also damaging the pockets of users and the cash register of many companies, and in this scenario it is understandable that one of the measures to be adopted consists of renewing computer equipment only if it is strictly necessary. For now, nothing seems to indicate that this trend is going to change in the short term, so it seems that we are at a good time to renew the SSD of our PC. Or to get a second unit.

Cover image: Andrey Matveyev

More information: TrendForce

The third quarter of this year has upset the forecasts of some manufacturers of consumer electronics. As we explained to…

The third quarter of this year has upset the forecasts of some manufacturers of consumer electronics. As we explained to…

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