08 March 2010
DRAM revenues rise to $8.5billion for Q4 2009
The fourth quarter 2009 represented a strong period for dram suppliers, with the industry posting revenue of more than $8billion for the ?rst time since the ?rst quarter of 2007, according to market analyst iSuppli.
This strong revenue performance came after a disastrous first quarter of 2009, the worst quarter for dram since the 2001.
According to iSuppli, the growth was primarily due to increased bit shipments combined with higher average selling prices (ASPs). This resulted in an overall industry revenue increase of 40% quarter on quarter, while ASPs climbed by 16% and bit shipments rose by 21%. The result was revenue of $8.5bn for the fourth quarter.
Mike Howard, analyst with iSuppli, said: "Historically, when dram has experienced a fast growth period during one quarter, subsequent quarters have seen dram fall to extremely low levels of growth and ASPs." However, Howard believes that this won't happen because, "The dynamics of the industry are radically different than other periods of history, such as when the Internet bubble burst and capital spending explosion resulted in unsustainable growth."
Instead, iSuppli forecasts a period where the dram industry will see solid revenue and steady profits. Neverthless, this does not take into consideration possible macroeconomic troubles, natural disasters or terrorist attacks that could upset the balance moving forward.
Author
Chris Shaw
Supporting Information
Websites
http://www.isuppli.com/
Companies
iSuppli
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