Kingston bucks trend as it hits $2bn turnover mark
Firm defies declining prices experienced in DRam industry
The DRam market is experiencing declining prices, according to analyst firm iSuppli, but this has not stopped Kingston Technology from hitting a $2bn turnover for the first time in its history.
Kingston, the world's largest independent memory module maker, hit its first billion in 1995. The $2bn mark for 2004 turnover represents a 38 per cent jump in sales over 2003.
A large part of that success is down to its highly successful ValueRAM division, which caters for the system builder arena and contributes over 50 per cent of the company's European revenues.
In addition to the system builder success, Kingston has also focused more on the digital media sector, notably Secure Digital Cards and USB drives, with year-on-year growth up by 350 per cent. Kingston also launched itself in the gaming arena with its HyperX brand of high-performance memory.
"Reaching $2bn is an incredible milestone for us," said John Tu, co-founder of Kingston. "By developing close partnerships with memory suppliers and our customers, we have introduced new levels of product quality and service to the memory market."
Kingston's good cheer is not evident for other DRam suppliers, however, as prices continue to fall in the run-up to Christmas. ISuppli has noted that prices have been declining steadily for three weeks.
"With DRam prices decreasing, it is natural for purchasers to adopt more conservative buying patterns," explained Nam Hyung Kim, principal analyst at iSuppli.
"This has resulted in an oversupply of DRam on the market. Although iSuppli is taking a neutral stance on present conditions, the pricing situation is growing increasingly negative. The first quarter of 2005 will not bring any relief, with the present oversupply situation expected to continue."