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DRAM price dive due in September, says iSuppli |
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Aug 28, 2007 at 04:10 PM |
 Contrary to comments recently made by some of the major memory manufacturers, the market conditions for DRAM are set to decline from September onwards as supply will outweigh demand, according to iSuppli Corp.
Previously, iSuppli had projected that price declines in DRAM would return in October this year; however, near-term market conditions remain in a state of flux as suppliers and distributors continue to work off a glut of DRAM inventory from the beginning of the year.
iSuppli now thinks that DRAM prices could fall by double digits sequentially in the fourth quarter, erasing any increases that aided suppliers in the third quarter.
"By reducing their output, DRAM suppliers have helped bring about higher pricing in the third quarter," said Nam Hyung Kim, Director and Chief Analyst for memory ICs/storage systems at iSuppli. "But OEMs and the channel are still working off the inventory oversupply left over from January, which will make it a difficult fourth quarter for memory manufacturers. Furthermore, the shortage of LCD panels is preventing white-box PC makers from purchasing more DRAM. Increasing panel prices also are slowing DRAM content growth in PCs in the third quarter."
According to iSuppli, global annual bit growth in 2008 should be less than 60 percent, compared to the 97 percent bit growth expected in 2007, up from 81 percent.
iSuppli now predicts global DRAM revenue will rise by 17.5 percent in 2008, following weak growth of less than 2 percent in 2007.
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