DRAM revenues dropped in the third quarter

Samsung DRAMOver production of dynamic random access memory (DRAM) fell in the third quarter by 1.2 percent – bucking the trend usually followed in the quarter.

Manufacturers are moving production from PCs to server and mobile memory because of stable prices and higher margins, according to analysts at DRAM Exchange.

The share of mobile DRAM, used in smartphones, rose from 33.7 percent in the second calendar quarter of this year to 40 percent in the third quarter.

However, according to Avril Wu, an assistant vice president at DRAM Exchange, said that oversupply will continue for quite some time and DRAM prices are expected to fall in the immediate future.

The two Korean giants – Samsung and Hynix – continued to have similar operating margins in the third quarter compared to the second quarter – that is to say 47 percent and 28 percent respectively.

However, Micron, the only USA DRAM manufacturer, saw its profits margin drop to 15 percent during the third quarter.