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Mobile DRAM market to gain from rising tablet sales

Posted: 20 Jan 2015 ?? ?Print Version ?Bookmark and Share

Keywords:TechNavio? DRAM? tablet? LPDDR4? LPDDR3?

Continuing its uphill climb until 2018, the global demand for tablet DRAM will see revenues increasing to 10.64 per cent CAGR, based on the recent report from TechNavio. By volume, TechNavio said the 2.24 billion gigabits shipped in 2013 and a 35.3 per cent growth rate will translate into 13.15 billion gigabits by 2018. However, despite the optimistic forecast, vendors will not be without challenges, added the market analyst.

Navin Rajendra, industry manager for TechNavio, said the global tablet DRAM market is also experiencing increased consolidation, a trend that will continue throughout the forecast period. He said existing vendors and new players are anticipating mergers and acquisitions when entering the market or broadening their product offerings. For example, Micron Technology acquired Elpida in July 2013. Micron was ranked fourth in the global mobile DRAM market, according to TechNavio, and its acquisition of third-place Elpida has allowed the company to solidify market share.

Including Micron, TechNavio sees four key vendors in the market; Samsung, SK Hynix and Winbond Electronics comprise the other three.

Device miniaturisation, fast device replacement boost mobile DRAM market

Increased use of mobile DRAMs in tablets, fast product replacement cycles, and miniaturization of electronic devices are all driving the market, said Rajendra, and advances in technology have led to an increase in the application of mobile DRAMs, from traditional uses to various new product segments. These advances help vendors implement cutting-edge technology in the production process that could lead to the development of compact-sized DRAM with higher efficiency.

There will be challenges, however, including increased competition among vendors, an increase in demand-supply gap and less time to market. In addition, the tablet market has become somewhat saturated in the consumer segment, but TechNavio is still bullish on other segments, however, such as growing use for tablets in other areas such as healthcare and manufacturing. "There's great potential for growth in these sectors despite sluggish growth in the consumer market," Rajendra said. In addition to tablets, he said gaming devices will also contribute to the healthy demand for mobile DRAM, while smartwatches will also start making a dent.

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