Memory business hit by cloud storage

Thunderclouds - Wikimedia CommonsThe widespread availability of different types of cloud storage is having a bad effect on makers of memory cards and flash drives.

That’s according to analysts from DRAM Exchange, which said that these types of products were a major revenue source for vendors, but those times are changing.

DRAM Exchange – a subsidiary of Trendforce – said that companies are struggling because of cloud storage services and high density flash storage designs.

Companies like Dropbox and Spotify are big in the cloud service business and increasing use of such services eliminates the need for people to buy flash cards and memory cards.

The move is underlined by the availability of services like Google Drive, Microsoft’s One Drive, and Apple’s iCloud and Apple Music.

Assistant VP of DRAM Exchange Sean Yang said: “Memory module makers are very worried about market saturation and decline when they are planning for their next flash drive products.”

Yang added that the global financial market’s downturn means vendors of smartphones, notebooks and tablets are slimming down their forecasts.

Because of all of this, DRAM Exchange thinks NAND flash memory prices will fall significantly during this third quarter.