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 (s aapl) have resulted in lower PC sales, and as Android (s goog) 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 (s intc), 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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