Tag: memory

DRAM shortage to last through 2013

nand-chipsThe DRAM supply shortage isn’t getting better and memory maker Inotera now believes it will drag on until the end of the year. Strong demand for smartphones and tablets is to blame, and prices are going up as well.

Inotera believes the drought could even extend into the next year. The average price of benchmark DDR3 4GB modules already rose 13 percent last month according to DRAMeXchange. In fact, the price of DDR3 4GB DRAM has already gone up by about 70 percent in 2013, reports Taipei Times.

DRAMeXchange said demand for DRAM is starting to pick up, reversing an extended period of oversupply. However, the shortage is not bad news for memory makers.

Inotera is hoping to do much better in the second quarter than in the first quarter, in which it managed to narrow its net loss. Memory maker Nanya was profitable in the first quarter and it is reporting that its average selling prices for Q1 rose 30.5 compared from the fourth quarter.

Although the PC slowdown did not help memory makers, phones, tablets and next-gen gaming consoles should help drive demand up and mitigate oversupply issues.

Demand for SSDs to stay strong

hdd-hugeAlthough the PC market has seen better days, shipments of solid state drives are expected to grow more than 600 percent by 2017, according to the latest figures released by IHS. However, even at this rate, two thirds of PCs shipped in 2017 will still have mechanical hard drives, although many of them will probably be hybrids. 

PC SSD shipments are expected to hit 227 million units in 2017, up from 31 million last year.

Hard drive shipments will drop to 410 million by 2017, down 14 percent from 475 million in 2012. In just five short years SSDs will claim 36 percent of the market, up from just six percent last year. HDDs will account for the remaining 64 percent, but memory makers stand to cash in from them as well, as hybrid drives hit the market in ever increasing numbers.

The driving force behind the SSD boom will be ultrabooks and other ultrathin devices. IHS analyst Fang Zhang believes ultrabooks and ultrathins, combined with touch screens and convertible form factors, will become very compelling machines, designed to lure consumers away from smartphones and tablets.

Of course, none of this is possible without more consumer interest. Although enthusiasts have been buying SSDs for years, the standard PC box buyer doesn’t care too much about the latest storage technology, which is still too pricey for mainstream adoption. Ultrabooks are slowly changing the public perception of SSDs are geeky devices for gamers and enthusiasts. Consumers are slowly starting to appreciate the added agility and responsiveness of SSD-based systems, and prices are tumbling as well.

On Tuesday Seagate announced its first series of SSD products designed to cover all market segments. The news was closely followed by an announcement from Western Digital and SadDisk, who will collaborate on new hybrid drives. Traditional HDD churners simply have to transition to SSDs and hybrid drives, it is just a matter of time.

“SSDs have dropped in price this year. The industry would probably put this down to supply and demand – but if I’m honest I think it’s all down to competition. Big players are moving in and really taking this industry to the next level – this week WD and Seagate separately announced their SSD push – and it wouldn’t surprise me if these larger players triggered a price war to push smaller players out of the market,” a reseller told us. “In terms of getting consumers more involved isn’t it just a case of making them a more prominent feature of gadgets and cost points? The average consumer just cares about what they can get and for how much.”

More marketing cash from the likes of Seagate and Western Digital will help, but so will tablets and smartphones. Consumer are already enjoying the perks of speedy solid state storage on their iPads and Androids, which means they are far more likely to go for an SSD based PC next time they upgrade. It is basically a case of not downgrading from a horse to a donkey, as Balkanese old wise men would say.

DRAM is strong, NAND is sluggish

nand-chipsIndustry analysts believe the memory sector will continue to do relatively well despite a decline in NAND demand. Although NAND might not be a very hot commodity, DRAM sales are expected to surge, reports The China Post.

The price of 2GB DDR3 chips in the first quarter rose 57.8 per cent, while NAND prices rose by 19.8 per cent, according to TrendForce. Strong demand for tablets and smartphones seems to be boosting DRAM sales, and the fact that an increasing number of vendors are introducing Android devices with 2GB of RAM should also help.

However, strong demand could also result in even higher DRAM prices. TrendForce believes the price of 4-gig DDR3 DRAM modules has the potential to rise by another 30 per cent. The outfit points out that the high season for mobile device launches is drawing near, which means more demand should be expected.

Although DRAM prices will remain strong, NAND prices are expected to decline in the short term. NAND prices should remain relatively stable, due to a reduction in supply.

It might sound a bit counter intuitive, but it is worth noting that smartphone and tablet peddlers are not increasing the amount of NAND storage in their devices. Most devices still ship with 8GB or 16GB of storage, while high end gear tends to ship with 32GB, or in some cases 64GB. This is in stark contrast to market trends just a couple of years ago, when each new generation of devices tended to offer a twofold increase in storage.

On the other hand, the amount of RAM is steadily growing. Three years ago smartphones used to ship with 512MB, which was upped to 1GB for the last two generations and as of late last year we are seeing an increasing number of Android devices with 2GB of RAM.