DRAM market is achieving profit stability by controlling production

DRAM market is showing good signs of profit with the rise in price of some of the mainstream DRAM chips. Vendors of the DRAM chips able to make profit and control the price by controlling the production based on the demand. There is now less over supply and no high demand. DRAMeXchange has reported the average price for mainstream 4GB modules rose by 16% in the second quarter, from US$23.50 to US$27.25. DRAM manufacturers’ second quarter revenue broke records, increasing by 24% QoQ to US$8.53 billion for the highest quarterly revenue growth in three years, finds DRAMeXchange. Korea's Samsung and SK Hynix together hold a market share hit 62.7%, a slight decrease compared to the previous quarter. Hynix' DRAM' revenues grew by 40.7% quarter over quarter, whereas Samsung revenue grew by 7.7% QoQ. 40% of Samsung's production is now mobile DRAM, finds DRAMeXchange. Although mobile memory is the supplier’s most profitable product, the 5-8% QoQ contract price decrease in the second quarter resulted in a drop in mobile memory revenue, bringing down Samsung’s overall DRAM revenue, says DRAMeXchange. Other details shared by DRAMeXchange includes: Elpida and Micron took 15.2% and 12.9% of the DRAM market, respectively, putting the suppliers in third place with a combined market share of 28% after their merger on August 1. Elpida’s revenue increased by 37% QoQ due to commodit...