Memory chip disaster: New data shows how prices have fallen (chart)

July 27, 2007, 4:00 PM UTC

The bad news for memory makers: prices for DRAM (dynamic random access memory) were in a free-fall in Q2 as gut-wrenching as the one flash companies like Sandisk (SNDK) and Intel (INTC) reported in earnings the past two weeks. (Flash prices, however, are clearly rising.)

The good news for PC buyers: Because of the DRAM collapse, those laptops and desktops you’ll be ogling later this year, which will run new memory-hungry operating systems from Apple (AAPL) and Microsoft (MSFT), should be a little cheaper thanks to lower component costs.

In the charts below the links, research firm iSuppli documents just how bad the memory supply glut has gotten. (The data was released Friday.) The top five memory producers – including Quimonda (QI) and Micron Technology (MU) – have all announced that they’re going to make less memory than they plan to ship in the third quarter – that should firm up prices a bit. Putting the prices in perspective, iSuppli says:

  • Global DRAM revenue declined by 24.1 percent, falling to $7.3 billion, down from $9.7 billion in the first quarter.
  • Samsung Electronics and Micron, which suffered 16.7 percent and 15.7 percent respective declines in revenue during the quarter, actually significantly outperformed the market and gained share.
  • The DRAM per-megabit Average Selling Price (ASP) plunge of 39 percent was actually marginally good news, because it was slightly less than the 40 percent drop iSuppli Corp. had predicted.
                 

 

Table 1: Preliminary DRAM Revenue Market Share In Q2, 2007 (Revenue in Millions of U.S. Dollars)    

 

Q2 Rank Company Q2 ’07 Revenue Q2 Share Q1 ’07 Revenue Q-Q Growth Q2 ’06 Revenue Y-Y Growth

 

1 Samsung 2,083.8 28.4% 2,503 -16.7% 2,150.0 -3%

 

2 Hynix 1,518.0 20.7% 2,160 -29.7% 1,174.0 29%

 

3 Qimonda 988.0 13.5% 1,283 -23.0% 1,206.0 -18%

 

4 Elpida 885.0 12.1% 1,171 -24.4% 764.0 16%

 

5 Micron 741.8 10.1% 880 -15.7% 854.0 -13%

 

6 Nanya 347.0 4.7% 510 -32.0% 534.0 -35%

 

7 Powerchip 318.0 4.3% 527 -39.7% 342.0 -7%

 

8 ProMos 224.0 3.1% 393 -43.0% 260.0 -14%

 

9 Etron 94.0 1.3% 85 10.6% 57.0 65%

 

10 Winbond 38.0 0.5% 45 -15.6% 36.0 6%

 

  Others 96.3 1.3% 101.0 -4.7% 109.0 -12%

 

  Total 7,333.8 100.0% 9,658 -24.1% 7,486.0 -2%

 

               

 

Source: iSuppli Corp. July2007            

 

               

 

               

 

Table 2: Preliminary DRAM Unit Shipment Market Share In Q2, 2007 (512Mbit Equivalents in Millions of Units)    

 

Q1 Rank Company Q2 ’07 Units Q2 Share Q1 ’07 Units Q-Q Growth Q2 ’06 Units Y-Y Growth
                 

 

1 Samsung 619.0 24.2% 461.0 34% 302.0 105%

 

2 Hynix 575.0 22.5% 470.0 22% 217.0 165%

 

3 Qimonda 336.4 13.2% 262.0 28% 216.7 55%

 

4 Elpida 320.9 12.6% 284.0 13% 140.0 129%

 

5 Micron 222.8 8.7% 171.4 30% 139.5 60%

 

6 Powerchip 167.0 6.5% 160.0 4% 90.0 86%

 

7 Nanya 155.8 6.1% 124.4 25% 107.0 46%

 

8 ProMos 119.7 4.7% 108.0 11% 59.7 101%

 

  Others 36.6 1.4% 27.0 35% 17.9 104%

 

  Total 2,553.2 100.0% 2,067.7 23% 1,289.7 98%

 

               

 

Source: iSuppli Corp. July 2007