After Micron reported a 26% drop in revenue and a 50% drop in earnings in the first quarter of 2019, the company had to cut production by 5%. Recently, Samsung and Nanya, two core companies in the world’s first and fourth storage industry respectively, also released their listed company performance disclosure, not surprisingly, the results of these two companies are also thundering. That means, like Micron, it is likely to cut production to maintain its actual profit structure. And then all the storage of the original factory concerted action.
I love storage network has introduced before — the relationship between storage producers is equivalent to Opec, is a highly controlled industry, a stable pattern of the industry, and the industry needs profits to survive. The existing market pattern will not be easily disrupted until the new demand generated by the new application scenarios erupts and generates sufficient incremental markets.
Japan’s Toshiba has been sold to ZICI; Ostensibly a Korean firm, Samsung is 55% foreign (80% of Samsung Electronics is controlled by Americans on profit-sharing preferred shares), mainly Citibank and Morgan Stanley; The third largest shareholder of Hynix Storage (formerly known as Hyundai) is the American capital BlackRock, Inc. Also known as the Black Rock Group, its largest shareholder SK Telecom is listed in the United States although it is a Korean company, and SK Telecom’s major shareholders are still American. In addition, Intel, Micron, Seagate and Western Digital are American enterprises. In other words, the global storage industry is actually controlled by American investors.