Uh Oh?

There was a brief post this morning on several platforms about Samsung’s profit decline in the current quarter … i saw it here first: https://www.cnbc.com/2019/01/08/samsung-q4-guidance-.html

I predict that the press will continue to connect this to the device declines (e.g., Apple) and the memory folks, (e.g., Micron) … but what really got my attention was this: “That’s following about 24 months of very, very aggressive growth,” he said. “So, suddenly, what’s happened is data center companies such as Amazon, Microsoft, Google … these companies suddenly have enough memory, and they stopped ordering. And that has really been one of the major stumbling blocks for these memory companies.”

So … does this mean that those same Cloud Service Providers (CPS) are slowing their purchases of CPU, Connectivity, Floor Space, etc? That would be HUGE and based on my experience, CPS don’t buy quantities of memory without someplace to install it … for me the key question is this

a) Did the CPS folks build out capacity sufficiently and are now consolidating operations?

b) or the worst case, has demand for data and CPS cloud services actually slowed down – if that is the scenario, “UH OH!”

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