Mobile memory market resists price declines

Apple iPad AirWe reported last week that DRAM for PC desktops is under clear pressure, with continuing price drops expected until the end of this year and beyond.

But the same isn’t true of mobile memory, according to market research company Trendforce.

Analysts said that this segment saw 7.7 percent growth in the second quarter, compared to the first quarter of this year, amounting to shipments worth $3.851 billion. And that won’t be the end of it because prices are expected to continue rising.

The introduction of the next generation of mobile memory, LPDDR4 has caused average selling prices to rise.

The clear leader in shipments for mobile DRAM is Samsung, which has installed the latest memory types into its premier smartphones, the Galaxy S6 and the S6 Edge.

Samsung also managed to reduce its dependency on DRAM for PCs and that now only accounts for 20 percent of its shipments.

Trendforce believes that PC memory will fall by as much as 30 percent during the third quarter, and is relying on Apple using the latest mobile memory to keep its profit margin high.

Samsung had a 57.6 share of the market during the second quarter, way ahead of SK Hynix (23.9%), Micron (16.5%), Nanya (1.2%) and Winbond (0.7%).

Putting this into geographical terms, Korea held 81.5 percent of this sector, America – that is to say Micron 16.5 percent, while the Taiwanese vendors only held two percent market share during the period.