KingstonFE
Contributor
Kingston Technology's revenues hit a record high of US$6.5 billion for 2010, representing a 58.5% on-year growth. However, high sales do not necessarily mean profits are high as well, company co-founder David Sun pointed out in a recent interview with Digitimes.
In early 2009, Kingston bought DRAMs for as low as US$0.50 per unit. Later in the year when the industry began its recovery, the chips were actually sold for US$2-3 each. In 2010 when the business seemed to be booming, the company purchased the chips for US$3 per unit but could only market them at US$3.20. Like books, you cannot judge an industry by its cover, Sun pointed out.
Looking into the remainder of 2011, a supply-demand balance would be a worst-case scenario for suppliers, Sun said. There is also a possibility demand would exceed supply later this year, Sun added.
For the interview of Sun discussing Kingston's business opportunities in the increasingly-popular mobile computing sector and his outlook for the company, please visit:
Kingston Blog