Memory market consolidation set to stabilise prices


Memory market consolidation set to stabilise prices

Microscope contributor

Kingston president and co-founder John Tu has predicted consolidation in the memory market next year will help to stabilise ever falling prices that have dogged the channel in recent months.

“As the impact of the economic downturn starts to hit home, it is likely that some of the smaller players in the memory market will have increasing difficulties and may not survive,” said Tu.

“Too many companies producing memory chips have caused prices to fall over the last months and consolidation should help the industry correct itself,” he added.

Other major trends expected to play out in the memory market next year include the coming of age of DRAM, high demand for Flash, the continued rise of virtualisation and Green IT, which many believe has become a bit hackneyed.

“[DDR3 memory] will be boosted by the introduction and adoption of triple-channel and possibly quad-channel memory technologies,” he said, adding “2009 is likely to see increased demand for high capacity, high performance SD cards.”

Many IT vendors jumped on the green bandwagon to market their technologies and helped to create a wave of disinterest among customers. Arguments now centre on energy efficiency which is where costs savings can be achieved.

In this respect green IT will be a hit topic, “spiraling energy costs are impacting everyone so if companies can use lower energy IT equipment it won’t be solely for ecological reasons but because it is good for the bottom line,” said Tu.

One area that is set for continued interest is solid state drives (SSDs) and Kingston said that though the market will not become mainstream any time soon, as the price will continue to be inhibitor.

However, reported reliability issues that the industry witnessed have been ironed out and refinements made by manufacturers. Tu added that prices would come down as the over-supplied NAND market could lead to price erosion.

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