Memory Module Shipments Expected To Increase In Q2 2019

A DigiTimes report said that multiple memory makers are expected to see an increase in shipments in the second quarter of the year, as well as slowed price declines.

Memory Module Shipments Set To Increase In Q2

According to DigiTimes, Taiwan memory makers showed mixed results in the first quarter of the year, as the DRAM and NAND flash prices suffered a sharp decline. However, the companies are now expecting their sales performance to improve in the second quarter as demand for DRAM and NAND flash is set to increase.

Furthermore, the suppliers are expecting an end to the sharp price declines they saw in the first quarter. The prices for memory modules will continue to fall in the second quarter, but not as fast, offering the companies some breathing room. Furthermore, the prices are expected to rebound in the third quarter as demand increases even more in the high season.

Time To Gain Market Share

Over the past year or so, DRAM and NAND flash suppliers have found themselves under intense pressure to lower prices and thus decrease their profitability. Some memory makers, such as Samsung, have been reluctant to lower prices, which ultimately led to the company losing both market share and profit.

This has worked in favor of lesser-known or lower-end memory suppliers that have taken advantage of the situation to increase both their market share and profits. DigiTimes reports that, for instance, Adata Technologies was able to reach a six-quarter high profit of NT$152 million (US$4.90 million) in the first quarter this year.

Meanwhile, Team Group saw its first-quarter revenues increase to 3.78% year-over-year to NT$1.69 billion ($54.6 million), which is a nine-year high for the same quarter. Following the compatibility and reliability validations for its full series of T-Force gaming memory modules, Team Group is now also seeking to increase its market share.