Report Paints Depressing Sales Numbers For DRAM Makers

The Bankruptcy of Elpida still carries the hope that balance in supply and demand will return in the DRAM industry.

However, GBI Research believes that the DRAM industry is caught up in a "vicious cycle" that forces full production volume to pay for past expenses, but results in oversupply that kills pricing.

In 2010, DRAM makers recorded revenues of $37.31 billion, and only $29.47 billion in 2011. For 2012, the researchers project only $29 billion. At the same time, smartphones and tablets promote a scenario where unit numbers are exploding, but capacities are shrinking. In 2010, 16.39 billion units were shipped. In 2012, the number will be almost double - 32 million devices.

To curb falling prices, DRAMeXchange reported that DRAM makers will be forced to cut their production as prices are forecast to further decline in August - after a dramatic 7 percent. A 2 Gb DDR3 chip currently sells for $1.08.

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