The initial estimate was a fall of 10% in the third quarter and 5% in the fourth quarter. However, the standoff between the government of Donald Trump and China made the drop rates increased to 15% and 10%, respectively.
The oscillations are related to the fact that Huawei is the main consumer of the memories made in the North American country. That would put an end to much of the market and generate a surplus of inventory.
“While the US ban ripples continue spreading, deliveries of Huawei smartphones and servers must face heavy obstacles in the next two to three quarters, impacting the peak demand season for DRAM 2H products and the precipitation time prices. “
With warehouses full, the output will be to further lower values, in order to attract other companies to consume the product of these manufacturers.
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On the other hand, Huawei has concluded a recent agreement with Russia’s largest mobile operator to develop 5G networks in the country. In addition, the Chinese brand plans to launch its new operating system in the coming months.