PC Industry To Face DRAM Shortage In H2 2010

Owing to the anticipated recovery in PC shipments in the next year, it has been claimed that the market for DRAM chips, the most commonly used computer memory, is likely to face some serious shortages in the second half of the next year.

DRAMexchange, an industry analyst firm, has claimed that the DRAM chips will be in short supply in the later part of 2010, as consumer demand for enhanced memory capacity is expected to soar considerably while companies will take their time to replace their older PCs.

DRAM chips market has been experiencing price stabilisation for past couple of months after surging for almost a year, as recession had taken a toll over the chip makers and drove them to reduce the capacity as well as capital spending, the report claimed.

According to the analyst, the global PC shipment is set to rise by 13 percent in the next year, primarily driven by notebooks; this particular segment is expected to register a robust growth of 22.5 percent to 160 million units, along with pared-down netbooks, likely to rise by 22 percent to a whopping 35 million units.

Announcing the report, DRAMexchange said: "DRAM will likely face a serious shortage in 2H10 triggered by the hot PC sales. The DRAM price decline will likely be eased in 2Q10. That is, DRAM vendors will have a great opportunity to remain in profit for the whole year".

Our Comments

This could mean that entry level prices for computers could rise slightly, by a few percentage points. This is unlikely to affect the demand for computers since the price of RAM only accounts for around 10 percent of the price of a machine.

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