Ed Ludlow

You know, I would, and I think I said that earlier to someone that we are, you know, this is going to be a time of like survival of the fittest where the, of course, the larger players are going to be able to secure their supply and leverage their, you know, their margins to be able to absorb some of the costs.

But we're, you know, we always see, right, at times of crisis is when the biggest innovations come out, right?

So,

You know, we're curious to see and we've already hearing of some of the lower OEMs either resorting to use devices to get the RAM from that or, you know, and memory from older phones.

But, you know, we still don't think it'll be enough to avert the drop that we're seeing.

The other strategy and mitigation strategy that they're thinking about or going to leverage is that they're going to try to move up in price segments.

Right.

So it's target above $200 price.

um phones but again the challenge there is that demand there is going to be very sensitive because one there's going to be so much increased competition from more established players in those price segments that it's going to be really harder hard for the low end below 100 brands to be able to get demand or consumers to buy their devices above 200 so even though they're being ambitious i think it's going to be a big challenge to um operate at the same volume

at higher price segments.

So, you know, that brings me to my other point.

We're not only looking at a full competitive landscape change where many players exit and, you know, share change between the larger players that are remaining, but also a complete product makeshift of the industry that is going to last for a long time.

Because even when the crisis stabilizes,

and memory prices go down slightly, they're not going to go back to prior levels.

So it's almost never permanently uneconomical to make those sub-$100, $150 devices.

Yes, exactly.

So the consumers that are not going to be able to afford those higher price segments or higher prices, which are across the board, not just on low end, some are going to end up resorting to keeping their devices longer or resorting to the used market.

So there's just so many dynamics at play and we're eager to see how OEMs and consumers adapt.

But it's going to be a very challenging couple of years.

Context changes constantly.