PCs no longer responsible for majority share of DRAM market

By on September 17, 2012, 2:00 PM

Information released by IHS iSuppli reveals that personal computers are no longer responsible for the majority demand of DRAM memory chips. In the second quarter, only 49 percent of all DRAM chips manufactured were used to build new PCs - the first time that PCs haven’t taken the majority share since the 1980s.

The revelation further validates the trend we’re already seeing where tablets and smartphones are replacing traditional computers. Apple’s introduction of the iPad in 2010 led a market shift away from computers that has been heavily felt by manufacturers around the globe. Just last week, Intel lowered their third quarter revenue outlook partially due to consumer interest in tablets and other mobile devices.

Experts at iSuppli believe the trend is irreversible at this point and will gradually decline over the next several quarters. By the end of 2013, computers will likely only account for 42.8 percent of all DRAM usage. Tablet share of the DRAM space, on the other hand, is expected to grow by four percentage points in the same time period.

Despite the doom and gloom, the PC market isn’t going to vanish overnight or anytime soon for that matter but the shift in focus from computers to mobile devices could potentially slow DRAM innovation for PCs. Many are betting that Microsoft’s upcoming Windows 8 operating system will give the computer market a much-needed boost. Some executives and Wall Street analysts, however, aren’t as confident with such a forecast.




User Comments: 4

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Dukenukemx Dukenukemx said:

Though I wonder if that DRAM chips are also counting as storage. PCs mostly use hard drives, but tablets and smart phones use flash memory.

There's also the fact that everyone has a PC, but not a tablet. The need to upgrade the ram, let alone the PC itself is less needed.

Guest said:

The entire premise of this article is flawed. What is true is that PCs accounted for less than 50% of the total market.

What is true is that tablets hold <3%, mobile phone ~15%, everything else not a PC holds 33% and PCs hold 49%.

So in fact, not only do PCs account for the greatest portion of DRAM usage, it's by over 50% more than the next highest product category, which is 'other'.

Guest said:

And I dont understand tablets..and I dream at 16 gb ram...

Guest said:

Guest, I don't think you understand what "majority share" means. Greatest proportion != majority share.

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