Memory Market Facing Huge Changes

Manufacturers of computer memory are already engaged in strategic planning for several years ahead, but with huge changes taking place in the market currently, as well as demands for DRAM taking a hit, some are said to be struggling to figure out how much of their budget to allocate to producing new memory. In recent years, the upgrade cycles of computers have meant that DRAM suppliers have continually advanced their technologies and adjusted their prices accordingly. However, the declining sales of PCs, and the emergence of tablets and smartphones as a potential replacement, has seen the upgrade cycle stretch from just two years up to four or five. The back-to-school season from August to September has been a let-down for many companies, and the Christmas surge is yet to pick up the pace, not even with the glimmer of Windows 8 on the horizon. The manufacturers of DRAM have been unable to improve their sales, and as a result of this, it seems increasingly likely that even the largest companies who produce memory will be reducing their output.

TrendForce, a leading market research company, reports that Samsung, the industry leader of RAM memory, will spent 2013 being highly conservative and will slow down technology migration plans considerably. The majority of companies will face heavy losses in the next calendar year, although TrendForce also believes that the largest suppliers, such as Samsung and SK Hynix, will still be standing when the dust settles. It is companies in Taiwan who will experience the biggest losses and will need to decrease their PC DRAM production by the largest amount. Nanya intends to turn from commodity DRAM to specialty DRAM production, while Powerchip could follow suit. The industry-wide slow output has seen predictions for bit supply growth hit just 22.2%.

Despite all of this doom and gloom, the DRAM industry is a viable, competitive and sustainable market. PC shipments are no longer the mainstream; figures for PC sales dipped below a 50% market share for the first time this year, but it doesn’t mean that this is the end of the personal computer. In fact, tales of the demise of DRAM have been greatly exaggerated. The oversupply which started in the past two years or so has seen prices for 4GB memory solutions fall to historical lows; great for consumers and the general public. Indeed, some of the cheapest 4GB PC memory solutions are now in the region of just $16, meaning that many PC users can now upgrade their existing systems to make them faster than ever. The market may be in dire straits, but this doesn’t mean that the consumer will suffer in any way. The cheaper memory solutions now available won’t dramatically boost the sales of DRAM worldwide, but they can certainly provide a personal computer with a cost-effective and high-quality upgrade.

The 2012 Macbook Pro Memory Mystery

Although it has been billed as ‘the most beautiful computer’ that Apple have ever built, and was launched to incredible sales figures in its opening weeks, the newest model of the Macbook Pro has come under fire for its non-upgradable memory and internal storage. Indeed, the lack of Apple memory options available for the new model has been listed as the top complaint for users of the new system, alongside the thermal shutdown function and the relative inability to repair faulty machines. The glued-in battery and the soldered RAM memory renders any sort of modification impossible. 25% of users surveyed by a FixYa report found this flaw unacceptable and are actively searching for ways in which the memory of their expensive new models can be enhanced.

Experts are advising that if consumers wish to buy a Macbook Pro with extensive memory options, they purchase an older model, but this would mean missing out on the celebrated new retina display along with a host of other new features. Those who wish to enjoy the new features of a Macbook Pro can turn to the alternative of purchasing external storage to store their most important files. External hard disks or hard drives can massively expand the initial space for Apple products and their small size fits perfectly with the portable element of the famously thin laptops.

External hard drives come with a whole raft of different options and sizes. Many of them utilize FireWire 800, Apple’s branded name for their own high-speed data serial bus, which can transfer data at rates of up to 800 megabits per second. USB 2.0 connectivity is also a standard so the units can be used to extend PC storage as well as that of a Macbook Pro. Units such as the 500GB Lacie Rugged 2.5-inch External Hard Drive are entirely powered by the port they are connected to, be that FireWire or USB, and they are plug and play, so no drivers are needed to necessitate use. These external drives are ideal for backups, as well as storing and transferring music, photos and other data. The shock resistant rubber bumper around the edges of the drive means this type of drive offers optimum portability and can be coupled with a Macbook Pro on the go for a powerful, high-speed memory upgrade.

Flash memory is also an alternative to keeping the data storage within a Macbook Pro relatively clear. USB flash drives and SD memory cards can effectively store photos and other important documents away from the system itself to keep it running smoothly and prevent the memory from becoming full too quickly. USB drives generally have much smaller capacity than external hard drives, but their higher levels of portability make them easier to use for those constantly on the go.

Tablets and PCs to ‘Work Together’ – HP Boss

The largest manufacturer of memory chips in the US, Micron Technology Inc., has reported a much larger fourth-quarter loss than expected for the period than ended August 30^th. Their net loss was $243 million, compared with just $135 million a year earlier, and the lower revenue is said to be due to a lacklustre demand for personal computers. The shrinking demand has seen sales of DRAM (dynamic random access memory) fall by 9% in the previous quarter, and many experts are saying this is a bad sign for those involved in the personal computer business; if the quarter ahead of the holiday season, as well as the quarter directly before the launch of Microsoft’s highly anticipated Windows 8 cannot reignite interest in purchasing computer memory, the chances of a reinvigoration in the near future look unlikely.

Companies such as Apple and RIM, who mainly manufacture handheld and portable devices, are keen to jump on the so-called ‘post-PC era’ bandwagon, but it’s been predicted in many quarters that the personal computer will continue to hold its own. HP executive Todd Bradley believes that it will be the partnership between such handheld devices and PCs which will see the greatest evolution in the coming years.

"Tablets will occupy a unique place," he says. "PCs will occupy a unique place. But and more with the ability to work together." There is no dismissal for either personal computers or tablets and smartphones, because the fact remains that each device has advantages that its competitors will never be able to match up to. Smartphones and tablets have a portable aspect which the PC will never be able to match, but PCs provide a fixed workstation that will always benefit a workplace or home office environment. The processors in PCs are generally agreed to be much stronger than those in portable devices due to their space restrictions, with PC users also able to add DRAM or RAM memory to their system whenever they feel it necessary. This is not yet possible with portable devices, but it is widely acknowledged that huge steps are being taken to ensure high memory levels in the devices in future.

Similarly to the HP Vice President, Canute Otellini, CEO of Intel, has vehemently denied the demise of the personal computer. "The PC isn't going away any time soon. If ever," he told BusinessWeek.

These extreme dips in demand for computer memory may sound like gloomy indications of the future for PCs, but they will have one huge benefit for customers; manufacturers will now need to up their game in regards to prices and packages to ensure their customers do not look elsewhere for their PC memory needs. The competitive nature of the market will likely result in lower prices for consumers and allow them to perform memory upgrades on their systems for much less than they did in previous years.