DRAM market slows, but keeps growing
Dec 20, 2004
While global DRAM revenue growth fell short of expectations in the third quarter and near-term business conditions have worsened, the market remains on track to achieve sales growth in 2004 and 2005, iSuppli Corp. believes.
This year will represent the peak of the present DRAM growth cycle, with 2005 bringing a marked slowdown in sales.
Worldwide DRAM market revenue grew by 0.7 percent in the third quarter compared to the second, far lower than iSuppli's previous estimate of a 7 percent sequential rise.
Megabit unit shipments grew by 11 percent during the quarter. However, the per-megabit Average Selling Price (ASP) declined by 10 percent, resulting in the weak revenue growth.
iSuppli's view of DRAM market conditions remains far more optimistic than the recent predictions provided by certain other research organizations. It believes that fundamental supply and demand factors remain sound, and that suppliers are still carrying lean inventories. Tier-one DRAM suppliers continue to deal with a tight supply situation.
iSuppli predicts the DRAM market will enjoy revenue growth of 56.2 percent to reach $26.7 billion in 2004. The DRAM market will grow by a marginal 1.3 percent in 2005.