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Cloud erodes DRAM market

Posted: 11 Nov 2011 ?? ?Print Version ?Bookmark and Share

Keywords:DRAM usage? cloud computing? memory space?

Due to the increasing adoption of cloud computing and the drive for thinner and lighter laptops using less memory space, IHS Inc. has forecasted that 2012 notebook DRAM usage will drop. In addition, uncertain economy driving budget-conscious products is dragging the growth in DRAM used in PCs, usually the biggest market for the memory.

IHS lowered its expectations for the year for the average DRAM content in notebooks to 4GB per device, from its earlier view of 4.2GB. Its growth view was lowered to 25 percent from last year, down six percentage points.

"Clearly, the era of PC DRAM growth of around 40 percent is a thing of the past," noted Mike Howard, principal analyst for DRAM and memory at IHS."DRAM companies know this, and suppliers now are turning their attention toward increased production of mobile DRAM for devices like smartphones and tablets, where the next wave of growth is projected to take place."

Last month, IHS said it expected DRAM content in smartphones to more than double this year. For next year, notebook DRAM usage is estimated to be 0.6GB lower than previously expected, at 5.1GB. By 2015, IHS expects DRAM content in notebooks to be 10.2GB, down from its earlier estimate of 12.6GB.

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