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iSuppli cautious on DRAM market fundamentals in 2006 |
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Dec 13, 2005 at 06:22 PM |
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Market research firm iSuppli is now projecting a slight
respite in the plunging DRAM ASP's that could materialise in the 1Q06. iSuppli
believes that there is a slow down in bit production growth compared to 2004.
In 2004 the research firm recorded a 62 percent increase in
bit growth but for 2005 the company is only projecting a 10 percent increase.
The transfer from DRAM to NAND Flash production by key memory manufacturers,
Samsung & Hynix have been the catalyst behind the fall in the bit growth
rates.
iSuppli believes that prices could increase in the 1Q06
which have continued to decline throughout 2005, often below manufacturing
costs.
iSuppli now predicts the DRAM market will suffer a slight
downturn in 2006 compared to 2005. Global DRAM sales are expected to decline to
$23.97 billion in 2006, down 5.1 percent from $25.25 billion in 2005. However,
DRAM market revenue is expected to rebound in 2007, rising 12 percent to reach
$26.8 billion.
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