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resistion
I think the DRAM companies who have other product lines besides DRAM, for ...
yalanand
Will the invent of new technologies like Fe-RAM etc will have any impact on the ...
Analyst predicts DRAM price plunge in 2H11
8/29/2011 8:45 AM EDT
LONDON – The second half of 2011 is shaping up to be a DRAM buyer's dream as the price for the memory component is set to go into free-fall, according to market research firm IHS.
The average selling price for the 2-Gbit DDR3 DRAM – a bellwether product – is projected to drop to $1.60 in the third quarter, down 24 percent from $2.10 in the second quarter. In 4Q11 the price could plummet another 22 percent to $1.25, close to cash costs for many manufacturers, said IHS. In the second quarter the market declined 5 percent from 1Q11.
"Contrary to typical seasonal patterns in which prices are very soft during the second quarter, that period this year saw relatively flat, unchanged DRAM pricing compared to the first quarter," said Mike Howard, principal analyst, DRAM and memory, at IHS. "The third quarter is shaping up to be pretty bloody for DRAM makers. The combination of inventory reductions by DRAM makers and more bits coming out of the fabs is resulting in a very soft pricing environment."
There could be as much as a 15.9 percent increase in shipments in the third quarter, and prices are not expected to firm up because of that, IHS said.
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goafrit
8/29/2011 5:00 PM EDT
That is a huge drop. I guess they are inventing a displacement technology to DRAM
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Netteligent
8/29/2011 5:09 PM EDT
DRAM Vendors must evaluate its product roadmap and pricing strategy to adapt with new market opportunities and realistic demands:
Time to "push" for latest technologies.
Retire older DRAM technologies.
Acceleration market adoption by dropping prices to attractive levels at retails.
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resistion
8/30/2011 1:27 AM EDT
All because of HP's exiting of PC sector, signifying major reduction of main demand for DRAM.
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Semiman_#1
8/30/2011 11:06 AM EDT
HP will sell their business just like IBM did with theirs. This in itself will not translate to any change in DRAM demand.
What will result in a change is a shift in a portion (not all) of the computing market from traditional PCs and laptops to more personal devices (or one way difficult devices as I like to call them) such as pads and phones. However, there is a potential for offset in this based on overall world market growth.
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resistion
8/30/2011 9:13 PM EDT
Right, it's because of the trendy i-devices, which are relatively DRAM-light, that have taken demand away from the traditional DRAM-heavy PC's and NB's. Not all demand, for sure, but enough for this year.
There would be a bigger concern, if at the same time, SSD demand is also dropping, for similar reasons (NB cannibalization).
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R. Mark Clayton
8/30/2011 6:20 AM EDT
So Gordon E. Moore was right.
If the price falls I [and others] will buy more memory. In any event MS Windows 8 will be with us soon. It will be the greatest operating system ever - literally, so it will need a lot more more memory to fit in.
=========
see http://en.wikipedia.org/wiki/Moore's_law
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Robotics Developer
8/30/2011 12:33 PM EDT
I am encouraged that DRAM prices will fall. Now I can look forward to significant increases in system memory and the resulting performance improvements. Can't wait.
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ReneCardenas
8/30/2011 1:47 PM EDT
How soon we forget that these cycles have repeated in the past, new-tech replaces slower/lower density memory or ASICs, disrupting previous architectures, and profit margins from vendors that are atill attempting to recoupe their tooling costs from previous generations colapse or get out of the market. and not forget that most OEM's have similar perils, theay are attempting to leap frog other vendors and other disrupting form-factors taking market share.
Free market forces are gand, but sure put great strain in many vendors to forecast in advance or, else suffer the pains to devalue their once premium-parts stock. You blink - you loose.
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LarryM99
8/30/2011 2:04 PM EDT
Yeah, buying memory for older technologies can be tricky. Prices drop until they stop, and then quickly they go to premium levels. It can be a 'catch the falling knife' situation if you are waiting for the lowest price.
Larry M.
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Gil Russell
8/30/2011 4:28 PM EDT
Who will be next to exit memory production?...,
Two companies in Taiwan are rumored to be near making the decision. Enjoy the prices while they last because once it's considered "cheap" the as-sold memory population will grow accordingly beginning the cycle anew.
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resistion
8/30/2011 9:16 PM EDT
Also wondering about that. A lot depends on what Elpida and Micron decide to do.
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yalanand
9/6/2011 2:49 AM EDT
Will the invent of new technologies like Fe-RAM etc will have any impact on the sales of DRAM ?
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resistion
9/6/2011 3:19 AM EDT
I think the DRAM companies who have other product lines besides DRAM, for example, Samsung and Hynix and Micron with their NAND, will be the only companies who can thrive during DRAM downturns.
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