00:00 Speaker A
Dan, please elaborate on this. Because shipments in the second quarter are down about 5%. I feel like I say this a lot, but it all has to do with running out of memory. So what’s the deal here?
00:12 Dan
Yes, shipments are decreasing. Part of the reason is that shipments had increased slightly in previous quarters as companies sought to ship devices ahead of future memory price increases. So they increased the number of shipments. Now they are starting to decline. However, revenue increased. Ah, is this also an effect of rising prices? That means fewer people are likely to buy at the moment, but those who are are buying more expensive devices. HP, Dell, Microsoft, and Apple have all increased the prices of their laptops. Well, like you said, it’s an AI issue, it’s an out of memory issue. Well, basically AI uses a type of memory called DRAM. Everything else uses a type of memory called DRAM. It’s just that they use it in different ways. Oh, so, you know, these deep-pocketed data center companies are just going out and scooping as much money as they can in order to get as much money as possible. Oh, and the other person is left holding the bag. Now, the problem with the PC market is that we don’t know exactly when this situation will end. Especially when, you know, we’ve just seen this turnaround post-coronavirus. As you know, we saw huge sales declines during COVID-19 and then decline as we move into the post-COVID era. And we’ve seen a recovery of this species now or in 2026. Hmm, that was supposed to help the industry get back on its feet. Oh, it lasted quite a while. There was nine quarters of growth. Um, but this is the first situation where we’re now seeing these declines starting to start, like you said, from 4.9% to about 5%. Um, it may continue for a while, uh, assuming this kind of shortage continues until 2030, maybe into the next decade, uh, depending on who you want to believe.
02:18 Speaker A
That’s right, Dan. We have heard similar comments from many guests. It seems like it’s not just this year’s problem, but next year’s problem that everyone is so worried about.
