Memory market suffering badly from recession

Posted on Tuesday, Feb 10 2009 @ 23:03 CET by Thomas De Maesschalck
Research firm iSuppli reports the memory market is doing worse than expect. The firm says global DRAM revenue totaled only $4.2 billion in Q4 2008, significantly lower than the predicted $5.8 billion. The market saw nearly zero growth and a 38 percent drop in average selling prices (ASP).
iSuppli says market conditions were so bad that even Samsung—the global DRAM market leader—"completely [missed] its shipment growth guidance, suffering a decline in market share and losing money for the first time in a year." Taiwanese DRAM makers were the hardest hit, with the top three (Nanya, ProMos, and PowerChip) suffering revenue drops in the 50-75% range.

On the other side of the coin, Micron did better than the rest of the market by far, seeing a revenue drop of just 16.4%. The U.S. DRAM supplier also enjoyed market share growth from 10.2% to 13.8% between Q3 and Q4, bringing it closer to number three DRAM supplier Elpida. Global number two Hynix saw the second-smallest revenue decline: a still-massive 32.7%.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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