DRAM (dynamic random access memory) chip sales hit $9.5 billion making more than the first half of 2009 and became the third largest quarterly sum in 11 years, according to iSuppli. Prices rose 2.9% during the same period , which normally shows a 15% drop during this, the weakest time of the year for DRAM sales.
What would cause such a raise during this normally weak season? What about the large path toward buying discount computer hardware?
Mike Howard, an analyst from iSupply said that sales and prices of DRAM chips "surged in the first quarter due to stronger-than anticipated demand for PCs and tight supplies. The strong performance bodes well for continued growth in 2010, possibly paving the way for the industry's greatest year in history."
The industry's greatest year in history? Is this just rosy optimism or a wave that can sustain a true bull run ? Can other trends such as discount computer equipment change this outlook ?
DRAM chip's ordinary selling prices are currently holding their velocity in the current quarter and supplies concerns for DRAM parts are becoming an issue as well.
It also appears like demand in the second half of the year will top the first half with the expansion of supplies not keeping up with the rising sales . Mike Howard states, "The first quarter of 2010 has positioned the industry for a bull run, the likes of which haven't been seen in more than a decade."
Raymond James, analyst iSuppli , predicts that DRAM sales could jump by 50% or even as much as 60% or more in the coming months .
Other trends such as buying discount computer parts online is also adding novel and continued demand to the global market.
For the last three years DRAM memory prices have created a monumental slump with new supplies surpassing the gain in demand. But with the Global Recession in full swing, multiple companies have had to decommission old factories and to run others below capability. The worst injured party was with Qimonda AG which declared bankruptcy.
Although net profit are on the rise , manufacturers are presently not investing in any new facilities or in increasing capabilties at current sites . This is in contrast to the major semiconductor chip manufacturers such as Taiwan Semiconductor Manufacturing which is investing $4.8 billion on new facilities or GlobalFoundries investing between $3-6 billion.
