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DRAMeXchange heralds arrival of post-PC era

Posted: 16 Jun 2011 ?? ?Print Version ?Bookmark and Share

Keywords:post-PC era? PC market? consumer demands?

According to DRAMeXchange, the continuously dwindling consumer demand for PCs and the lowering of its prices mark the "official" end of the PC era. The rapid shift to the highly-popular tablet PCs and smartphones has also contributed to the downfall of the PC market.

In a report, DRAMeXchange said tablet PCs and smartphones have taken the lead in the buyers' markets, pushing down the volume of PC shipments to single-digit annual growth from their usual double-digit growth trends more than two years ago or before the 2009 financial crisis.

This year, in fact, DRAMeXchange has projected that global PC shipments will likely grow by only five percent, just slightly higher than the 2.4 percent annual growth rate that was recorded during the financial crisis in 2009.

Comparably, the hot-selling tablet PCs and smartphones were expected to post annual growth rates this year of as high as 200 percent and 80 percent, respectively, especially since the global economy is not likely to encounter another serious setback this year, according to the report.

The report also said another indication was the 2.74 percent drop in the contract price of PC DRAM during the first six months of the year ending in June as driven by lower PC shipments and lower content per box.

DRAMeXchange noted contract prices during the first half of the year ending in June indicated a downward trend, with DDR3 2GB's average contract price reaching only US$ 18.25 and 4GB being quoted at US$ 35.5, down by 2.67 percent and 2.74 percent, respectively.

In addition, PC-OEMs maintained conservative attitudes toward replenishing their PC inventories, fueled by the uncertainty of PC demand during the remaining half of the year as well as slow growth in contents per box and the weak recovery of both the European and US economies.

DRAMeXchange said the selling prices to PC-OEMs of several module houses were lower than the contract price and that most transactions during the first half of the year ending June were closed at the price range between the average and the low of the contract price, thus, enhancing the possibility of further lower contract prices in the remaining balance of the year.


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