Report Paints Depressing Sales Numbers For DRAM Makers

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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