DRAM oversupply adds salt to wounded market

Worldwide DRAM revenue slides 11% in third quarter

By , Computerworld |  Storage, DRAM

"For instance, the last upheaval occurred over a drawn-out period lasting nine quarters, while the level today from trough to current high has taken only six quarters. Also, the present peak is already higher than all of the data points in the previous cycle save for one -- the previous apex, reached in the first quarter of 2009 -- and there is every possibility that this cycle could surpass the last," iSuppli stated in its report.

Given the shakiness of the world economy, the DRAM index could continue to rise for a few more quarters, worsening an already bad situation within the space, iSuppli stated.

Leimbach said, however, that there is a "glimmer of hope."

"Should expectations arise that the economy might be headed for improvement -- the belief alone is sufficient -- things could rapidly improve," Leimbach said. "An example of heightened expectations very quickly reversing the downward path of the DRAM market occurred in 2009, when the Inventory Index recovered from a beleaguered 14 weeks to a desirable six weeks in the space of just three quarters."

Lucas Mearian covers storage, disaster recovery and business continuity, financial services infrastructure and health care IT for Computerworld. Follow Lucas on Twitter at @lucasmearian or subscribe to Lucas's RSS feed . His e-mail address is lmearian@computerworld.com .

Read more about storage in Computerworld's Storage Topic Center.


Originally published on Computerworld |  Click here to read the original story.
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