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Micron Technology Inc. Message Board

  • bigchad789 bigchad789 Jan 23, 2013 11:37 AM Flag

    DRAM looks good

    Outlook for global DRAM sales more bullish, report says

    Staff writer, with CNA


    Global DRAM sales this year are expected to increase by about 14 percent from a year earlier as the global PC market is forecast to return to a pattern of growth, a research report said yesterday.
    In the report, iSuppli said the expected increase in sales of DRAM also reflects consolidation in the sector, which could cut supply.
    The researcher said the global DRAM sector is expected to post US$30 billion (NT$870 billion) in revenues this year, up from US$26.4 billion last year, while shipments are expected to increase 36 percent.
    The researcher added that it expects PC shipments to grow 8 percent this year after declining for the first time in 11 years last year.
    However, as the risk of further weakness in the global PC market remains, with concerns over demand for Ultrabooks and Windows 8-based devices lingering, that could undermine DRAM sales, iSuppli said.
    “If PC growth falls below expectations and supply remains somewhat inflated, the DRAM market could be headed for a third straight year of decline in 2013,” Mike Howard, a senior principal analyst at iSuppli, said in the report.
    However, the acquisition of Elpida Memory Inc by Micron Technology Inc could be an important factor in cutting production and stabilizing DRAM prices in the second half of this year, while production cuts by Powerchip Technology Corp (力晶科技) and ProMOS Technologies Inc (茂德科技) may also help improve global DRAM market conditions to some extent in the first half, iSuppli said.

    Sentiment: Strong Buy

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