Global mobile DRAM revenue amounted to US$3.3 billion in the second quarter, accounting for 31% of DRAM industry value, a slight increase over 29% in the first quarter. As DRAM supply is tight worldwide, mobile DRAM prices stabilized in the second quarter. Furthermore, with Chinese smartphone brands on the rise and the spread of 4G networks, mobile DRAM shipments have been strong, pushing industry value to grow by 12% QoQ in the second quarter...
Reviewing the NAND flash market in the second quarter, although OEMs began restocking in June, NAND flash supply exceeded demand in April and May. As a result, average NAND flash selling price fell by 5-10% QoQ in the second quarter, and suppliers saw a decrease in revenue and operating margins...
As a result of strong smartphone growth, mobile DRAM has the highest production ratio in the global DRAM industry, edging out commodity DRAM. With less supply, commodity DRAM has become the most profitable product category and contract prices were on the rise in the second quarter. Global DRAM industry value reached US$10.8 billion in the second quarter, a 9% QoQ increase. Looking at profits, of the three major DRAM makers, Samsung had the best performance with an operating margin of 39%, while SK Hynix was close behind with 38%. Inotera, part of the Micron group, had the highest operating margin of all DRAM manufacturers, at 55%. With the oligopoly and tight supply, a decline in DRAM prices would have been difficult. TrendForce forecasts DRAM industry value will reach US$46.8 billion in 2014, a 36% YoY increase...