Demand for DRAM will decline sharply in 2011

January 14 news, according to foreign media reports, industry analysts warned that after several years of prosperous development, DRAM manufacturers face a serious decline in demand this year. Based on current figures, iSuppli predicts that DRAM global average sales price will drop to $35.5bn, a decrease of 11.8% compared to last year. The research company warned that the price of DRAM will continue to decline in the next two years.

Mike Harold, senior analyst at DRAM and memory at iSuppli, said that after a good development in 2010, this year's DRAM market may be in trouble. With the oversupply of products, the price will drop sharply this year, which will also lead to a decline in revenue.

As Samsung expects to dominate the market, the production of DRAM modules has grown rapidly over the past period of time. However, iSuppli's data shows that the shrinking demand for DRAM products will continue until 2013, and the price of the product will not return to last year's level. The decline in average DRAM prices for suppliers is bad news, but it will save consumers money.

The price of the current 2GB module has fallen by half from six months ago, which will bring higher DRAM configurations to personal computers and provide more memory for consumers' computers. Vendors are already investing money to promote the development of memory for PCs and servers. This is bad news for vendors, but it is different for consumers.