DRAM prices plunge in first quarter
By James Carbone -- Purchasing, 6/18/2009 2:00:00 AM
First quarter DRAM revenue fell 22.3% from the fourth quarter due to a 25% decline in the contract price for 1Gb DDR2 DRAMs according to researcher DRAMeXchange.
Revenue of own-brand DRAM manufacturers fell from $4 billion in the fourth quarter to $3.16 billion in the first quarter, says the researcher. The decline occurred despite attempts by DRAM suppliers to stabilize prices and revenue by reducing production.
For instance Samsung, the world's largest DRAM manufacturer, reduced production by 7.7% and Hynix, the second largest DRAM supplier, cut output by 8.6%. However, Samsung's revenue fell 16.1% and Hynix's sales declined 16.3%.
Despite the declines, Samsung increased its market share from 24.5% in the fourth quarter to 26.5% in the fourth and Hynix's share rose from 20.7% to 22.3%, according to DRAMeXchange. The two companies' share increased because other DRAM manufacturers suffered larger first quarter memory losses.
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