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Summary:

Samsung is predicting an oversupply of dynamic random access memory (DRAM) used in computers due to expected weak PC sales. The uncertain economic climate is cited as the primary cause for lower than expected PC sales in spite of the upcoming holiday season.

Samsung DRAM

Samsung is predicting an oversupply of dynamic random access memory (DRAM) used widely in PCs, due to expectedly weak PC sales. The uncertain economic climate is cited as the primary cause for lower-than-expected PC sales, in spite of the upcoming holiday season. The glut should result in lower prices, which should get passed on to consumers.

Lower PC sales may also partly be a result of the iPad and the coming glut of Android tablets, as netbook inventor ASUS has already warned investors. High sales of the iPad have resulted in lower PC sales, and as Android tablets are poised to appear on the market in great numbers, the impact should be even greater. These tablets use less DRAM than conventional PCs, instead using Flash RAM for the primary memory.

Samsung is one of the largest suppliers of DRAM globally. Kwon Oh-hyun, head of Samsung’s chip business, gave the warning at a conference in Taipei. He did not indicate a long-term slowdown was expected, but did state the glut is a result of the expectation of lackluster end-of-year holiday PC sales.

Sales of servers had a strong second quarter according to Intel, and Samsung is no doubt hoping that segment continues to perform well through the end of the year to minimize the affect on the DRAM market.

Image credit: Samsung

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  1. “These tablets use less DRAM than conventional PCs, instead using Flash RAM for the primary memory.” First off, what is “Flash RAM”? Second off, if you meant flash memory, how do flash and DRAM correlate? They do two totally different functions

  2. Slateless Fandroid Tuesday, September 7, 2010

    This is a key indicator of the iPad invasion that has just begun to wreck absolute havoc upon the lowly PC makers bottom line. Apple scored a grand slam home run with this baby. The PC makers are scrambling for a response to Apple’s assault on their bread and butter netbook/notebook sector. Steve is a man on a mission and has become an unstoppable force.
    When will a decent Android tablet appear is anybody’s guess but so far the Android slates for sale are pathetic pale imitations of the awesome iPad. Steve is sleeping very well these days and it helps that he has more than $48 BILLION under his pillow and his Cupertino company has NO DEBTS. Life is Good. Android Bite Me.

  3. The once unbeatable iPhone is now being squashed by Android handsets. The iPad will be no different. Android 3.0 will usher in the era of the Android tablet and slaughter the iPad.

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