Mobile DRAM slightly up in Q2; flash slightly down
Mobile RAM was slightly up in Q2 and NAND flash slightly down, reports IHS.
Q2 mobile DRAM revenue amounted to $1.85bn in Q2, up from $1.83 billion in Q1.
Mobile DRAM commanded more than 26% of all DRAM revenue during the second quarter—a significant improvement from 19% the same time a year ago, and from 11% two years ago in 2010.
The price of mobile DRAM has fallen less than that of its besieged cousin, commodity DRAM. While commodity DRAM historically has been subject to great swings in pricing—with the product losing as much as half of its value from the second to the fourth quarter last year alone—mobile DRAM pricing is less vulnerable, falling 10% per quarter on average.
Mobile DRAM also tends to be priced according to manufacturing cost, not based on the general balance between supply and demand. As a result, DRAM companies are able to earn a more reasonable margin for their mobile memory products—unlike in commodity DRAM, where negative margins are frequently the rule.
Samsung Electronics continued its hold at the top of the mobile DRAM market in Q2 with sales of $1.bn – 61% of the global mobile DRAM market.
Hynix was No. 2 behind Samsung with sales of $362m, down from $366m in Q1. Elpida and Micron were in third and fourth places, respectively.
Elpida had 13% share based on mobile DRAM revenue of $245m, up sequentially by 12|%; while Micron saw its share amount to 4% in light of $7m in revenue, down 3% on the quarter.
Revenue for the flash memory market by year-end is projected to decline to $24.3bn, down 4.7% from $25.5bn in 2011. The NAND segment this year will account for $20.8bn and the NOR sector will make up the remainder at $3.5bn.
While this year’s numbers are slightly down from 2011 because of a larger-than-expected erosion in NAND prices, the market will bounce back next year with growth of 11.4%, and then continue to expand at a steady clip.
By 2016, total flash memory revenue will amount to $33.3bn, equivalent to a five-year compound growth rate of 5.3%.
The NOR industry continues to contract, with the latest retreat occurring in the second quarter.
NOR revenue fell to $837m, down 4.6% from the earlier quarter, and down by an 28.% Q2 2011.
NAND is flourishing despite a temporary setback this year that saw an erosion in average selling prices cut into total anticipated revenue.