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DRAM Prices Down, But Not So Bad

DRAM Spot Price per GB HistoryFor the past ten months DRAM prices have been undergoing a steady slide.  Is the market in a crisis?  Not really!

Today’s low spot price of $4.30/GB puts us on a par with February 2013, a full two years ago (see chart).  DRAM makers have done a lot to reduce their production costs since that time, so their margins this quarter will be much better than they were in the first quarter of 2013.

But we are still a very long way from the bottom of the last market downturn.  In late 2012 spot prices reached a low of $2.52/GB, a full 41% lower than today’s lowest spot prices.

The Memory Guy models the production costs of leading memory chips, and DRAM manufacturing costs have been decreasing for the past several years at an average annual rate of about 30%.  That means that costs today are about half of what they were two years ago, and one third of their level this time in 2012.

So even though today’s Continue reading

Does the ‘Windows Bump’ Really Exist?

Windows Introductions vs DRAM Bit GrowthDRAM manufacturers often refer to “The Windows Bump” – a phenomenon that is believed to occur after every release of a new version of the Windows operating system.  According to this theory DRAM demand increases for a period following an introduction.

An example: in a recent article Kingston VP Scott Chen said that an increase in sales for Windows 8 might help raise DRAM demand, leading to more stable prices.

Demand is expected to pick up on the upcoming launch of Windows 8 tablets and Ultrabook PCs later in the second half of 2012.

Does the Windows Bump really exist?  The Memory Guy thought Continue reading

Samsung Revenues Reflect NAND Price Increase

Samsung Memory Revenue History 3Q09-2Q12NAND prices have increased since July, and that appears to have helped Samsung to increase its memory revenues in the past quarter.  That comes as a welcome change!

As this post’s graphic illustrates the company has has seen downward-trending memory revenues for five of the past six quarters, but Q2 revenues increased by ten percent.  Interestingly enough, the last quarter-to-quarter increase was a miniscule 0.3% one in Q2 of 2011.  It looks as if growth tends to regularly occur in Samsung’s second quarter.

Last quarter’s revenue growth helps to debunk rumors that Samsung was Continue reading

DRAM Consolidation in 2012?

History of DRAM Market Share by Company2012 is likely to be a year in which the DRAM market consolidates a little bit more.

Consider this:

  • At its peak in the late 1980s the DRAM market sported 23 suppliers.
  • Today there are 6 suppliers of any note: Samsung, Hynix, Micron, Elpida, Nanya, and Powerchip
  • The already-depressed market is only going to worsen in 2012.  Capital spending in 2010 is seeing to that.  Although many believe that prices cannot get any lower, that is exactly what they will do in 2012. Continue reading

Contact

Jim Handy Objective Analysis Memory Market Research +1 (408) 356-2549 Jim.Handy (at) Objective-Analysis.com

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