Monday, October 27, 2008
John Tu, CEO and founder of Kingston Technology, said his company would emerge stronger than ever from the current crisis which has been bringing down computer memory prices.
Kingston is one of the largest suppliers of computer memory (DRAM) in the world, and the second largest suppliers of flash memory, which is used is many portable devices such as mobile phones and digital music players.
Too many companies producing memory chips have caused prices to fall over the last months, and Tu said consolidation is how the industry will correct itself.
"The industry will weed out those who are not fit," he said. "That means when this is all over, you will have less competitors. We will have a much clearer and simpler market structure."
Tu said many of his competitors struggle as the situation worsens, due in part to the global economic situation.
"Now we have an issue of over-supply and that plus the economic issue so demand is soft." iSuppi, an industry research company, recently cut its growth expectations for the industry.
Tu, who is visiting Gitex this week, said the company is also positioned to weather the current global economic crisis. "Financially we are very strong." Tu also said the company has solid cash reserves, but did not specify. In 2007, Kingston generated revenues of $4.5 billion
By: DocMemory
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