WDC, NAND, NVM, enterprise storage systems, etc. Message Board

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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.

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Nov 20 3:59 PM EST

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To: storage_savant who wrote (3721)	5/11/2018 7:14:16 PM
From: SiliconAlley	Read Replies (1) of 4828

Nice education for readers here, but unrelated to the point I was responding to, relating to declining shipments of smartphones, and a fall in demand. This decline is fact, supported by published industry numbers, and not flawed conjecture on the part of an author (as stated by the poster). While the article cited mentioned the 44% decline in Qualcomm licensing revenues (which the poster misstated as a decline in total revenues), it was shared in a different context, and not as evidence of declining shipments (as misstated by the poster). Cost per bit is lower on a per unit basis, but the overall revenue is higher if the demand shifts from lower to higher capacity. Shifts do not occur overnight from a $3 device to a $4 device (using today's numbers), increasing revenue. Demand shifts to higher capacity occur after price per bit has come down. So the true demand shift is from this year's $x device to next year's $x higher capacity device. The shift to higher capacity does not increase revenue, but avoids a decline in revenue. Which is why a reduction in smartphone shipments reduces both demand AND revenue.

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