The memory chip market has seen tremendous growth over the last two years, but more and more signs are here that the boom is coming to an end. Chip maker Micron said it expects current-quarter revenue to decline significantly due to weak near-term supply-demand dynamics. Micron expects things to expand again in the second half of 2019, but some market watchers are pessimistic and predict a much longer bust.
Sanjay Mehrotra, Micron's president and CEO, told analysts on a conference call following the quarterly report that the downbeat forecast is primarily related to a glut of inventory in the supply chain.
"We're just going through an air pocket here related to primarily inventory adjustments as well as some seasonal, weak mobile demand — including mobile demand in high-end smartphones — that is impacting some of our near-term visibility as well as the near-term outlook," Mehrota said.