DRAM manufacturers have successfully pre-empted a break in Q4 revenues at the end of last year by focusing on mobile and server memory.
According to the latest DRAM Exchange report, the first-tier DRAM makers whipped out their divining rods right on time to pre-empt a massive break in revenues due to the PC sales slump, which lead to contract prices on desktop DDR3 DRAM falling by as much as 25 percent.
Manufacturers reduced desktop DRAM production by 50 percent and slyly shifted production to more bottom-line-friendly mobile and server memory to make up for the break.
As a result, and despite DRAM sales dropping 1.7 percent in Q4 2011, DRAM makers tallied up a total of $6.45 billion in revenue.
Samsung Electronics remains king of the hill in the DRAM business, totalling 44.3 percent of market share, Hynix comes a far second with 23.3 percent share, while Micron and Elpida come in at 12.1 and 12 percent, respectively. Taiwan’s Nanya remains steadfast at no.5 with just 3.6 percent of the market.
The PC slump is projected to continue throughout the first two quarters of 2012, and as interest in mobile and handheld computing devices increases the shift in production will become irreversible.
As DDR3 desktop memory seems to be going nowhere fast, at least not until DDR4 reaches mass appeal in 2015, we’d recommend you buy now to save later, when supply constraint will take its toll.