Kingston is ahead of the pack in third-party DRAM modules, decimating the competition during the first half of 2010 by using its extensive buying power as costs of modules rose. In the first six months of 2010 it sold a staggering $2.6 billion of DRAM modules, up 45.6 percent from the second half of 2009.
According to market researchers at iSuppli, Kingston managed to outperform the overall DRAM market which itself expanded by 26 percent in the first half of 2010. By using its market dominance it trounced the smaller players, using its buying power to out-do other third party module makers. In turn it snared favourable pricing for DRAM compared to the rest of the market, passing on these discounts and effectively undercutting rivals.
Kingston, with its stockrooms full of DRAM, is now able to decide when and where to sell its products depending on what will be most profitable, either to manufacturers or consumers.
“To put Kingston’s performance into perspective,” says iSuppli, “the company’s revenue in the first half rose by $802 million sequentially – more than twice the amount of the next four largest suppliers combined.” When there’s a rise, there’s bound to be a fall, and in the first half of 2010 it was market share for rivals that plummeted. All other Top 5 companies suffered sequential declines.
A-Data, Kingston’s nearest third party DRAM module competitor, managed just $423 million in revenues over the first half of 2010. To put that into perspective:
The rest of 2010 will be a good year for DRAM modules, with third parties and manufacturers generating a worth of $31 billion altogether. That’s up 73 percent from 2009’s $18 billion. However, 2011 through to 2013 will see shrinking revenues. DRAM content per module will continue, but chip price declines will quicken, affecting overall revenues.