Weakening PC Sales for Smaller Devices Like iPad Could Drive Down Prices on Memory Chips
Samsung warns DRAM oversupply on weak PC sales. Prices of dynamic random access memory are expected to fall due to an oversupply in the market, thanks in part to devices like the iPad which use fewer DRAM components than traditional PCs. The downbeat comment from the South Korean firm raises concerns the boom in the DRAM sector may be nearing an end.
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"Prices of DRAMs, widely used in computers, have turned weaker since July after an unusually strong first half, as PC demand growth lost momentum and as the European debt crisis threatens to further weaken sales of computers and other consumer goods.PC sales are also taking a hit as consumers delay purchases and opt for smaller tablet computers, which use fewer DRAM components than desktops and notebooks.
The new device is gaining popularity after Apple introduced iPad and vendors such as Samsung, Nokia, LG Electronics and Dell are rushing to get a piece of the emerging market."
