Boost in Memory, Storage to 'Re-Ignite’ Smartphone Sales in 2020, Says Micron

Softness in demand for DRAM and NAND components, partly from the slowdown in global smartphone shipments, prompted Micron Technology’s decision to scale back production to reduce “elevated” inventories, said CEO Sanjay Mehrotra on a Q2 call Wednesday. The excess inventory is “at good cost,” meaning there’s “no obsolescence issue,” he said. Next-generation “premium” smartphones introduced at Mobile World Congress “typically feature” 8 to 12 gigabytes of DRAM and 256 to 512 gigabytes of NAND, double the DRAM and quadruple the NAND of “current-generation” premium smartphones, he said. “These trends will likely cascade to lower-tier phones,” helping “re-ignite” smartphone unit sales beginning in 2020, he said. The smartphone market is spiraling toward its third straight year of declining shipments, reported IDC this month. Micron expects 5G to create a market opportunity “beyond mobile,” said Mehrotra. “We expect 5G adoption to create increased demand for memory and storage in IoT devices, wireless infrastructure and data centers.”