Simon Chen, chairman of memory module maker ADATA, recently pointed out that due to the oversupply of memory chips in the first quarter, both dynamic random access memory (DRAM) and flash memory (NAND Flash) prices have fallen. However, due to the decline in the price of SSD, shipments have risen.
Simon believes that the demand for SSD will continue to increase due to the decline in NAND Flash, and the demand for new smartphones and PCs will continue to rise. Therefore, the decline in memory prices may slow down in the second quarter. In fact, Simon has said earlier that with the launch of new consumer electronics products in the third quarter and the arrival of the peak season, memory prices are expected to pick up in the second half of the year.
In addition, Simon pointed out that ADATA had responded to the memory price drop in the fourth quarter of last year and successfully raised the first quarter gross margin to 10.8%. Simon stressed that ADATA will continue to focus on market dynamics in order to make timely strategic adjustments.