Kingston mourns memory mayhem

Vendor argues currency fluctuations are making it difficult for memory channel players to plan ahead

Currency fluctuations are causing mayhem in the memory channel

Kingston Technology has warned the memory channel to expect a turbulent year as violent currency fluctuations make it impossible to decide when to stock up.

Bernd Dombrowskly, EMEA inside sales director at Kingston, claimed the stellar first quarter enjoyed by many memory manufacturers had been fuelled by speculative purchases by brokers.

"In the second quarter we lived through the fall-out," he said. "This fall-out was very much driven by traders who take inventory positions when they believe the market is going up."

"After such a buying frenzy, this inventory had to move through the channel in April."

System builders may also look to reduce spending, as memory specifications are scaled down and public sector investment dries up, said Dombrowskly. He added that currency volatility will cause major headaches for traders this year.

"With hardware products, one big influencing factor is the exchange rate," he said. "If you had purchased product at the beginning of the year, even if the dollar had not moved at all, we would have had a 15 per cent price advantage because of the devaluation of the Euro and the pound."