SanDisk Corp stated that their fourth-quarter expectations on overall revenue will fall short compared to the previous forecast. The company cited weaker-than-expected overall sales when it comes to their flash memory storage chips and other retail products.
SanDisk Corp’s overall shares, which is an Apple (iPhones) memory chip supplier, decreased by almost 14% during heavy trading last Monday. The company’s warning relatively also scared investors specifically Micron Technology, a rival company, which stock was also down by 5%.
Analysts stated that SanDisk’s weak overall revenue forecast was in part because of the cut in market demand. This is because Samsung Electronics, today’s market leader, shifted focus to their own chip business with the aim to make up for the recent decline in smartphone sales.
Monika Garg from Pacific Crest Securities stated that lower overall internal sales at Samsung of SanDisk Corp’s flash memory chips (NAND chips), created the need to sell their products in other markets, which significantly affected overall pricing.
Last week, a number of analysts also estimated that that from October to December Samsung’s overall chip business already earned more compared to its current mobile business. This was pushed by increased demand for their memory chips that are used in smartphones and personal computers.