Katie MarsalSamsung Electronics on Tuesday warned that weakening PC sales could drive down prices on memory chips even further, according to Reuters. The report noted that there is currently an oversupply of memory in the market as sales of traditional PCs have slowed.
It stated that the sale of devices like the iPad has had a dramatic effect on the price of RAM, as mobile tablets are less reliant on such memory than PCs.
"PC sales are also taking a hit as consumers delay purchases and opt for smaller tablet computers, which use fewer DRAM components than desktops and notebooks," the report said. "The new device is gaining popularity after Apple introduced iPad and vendors such as Samsung, Nokia, LG Electronics and Dell are rushing to get a piece of the emerging market."
As those devices come to market, experts believe that DRAM inventories could become even higher, as people move away from traditional PCs. The report noted that Samsung is considering a plan to spend 30 trillion won next year on chip investment, as a "prelude to DRAM oversupply in the quarters ahead."
In June, Apple Chief Executive Steve Jobs predicted that the iPad and devices like it are part of an "uncomfortable" transition to the post-PC era. The Apple co-founder predicted that devices like tablets will eventually replace the PC as we know it to become the most popular computing option.
Jobs compared the move to mobile devices like the iPad to the U.S. automobile industry, when most vehicles were trucks because they were driven by farmers. He noted that cars became more popular as cities rose, and features like power steering and automatic transmission were added over time.
"PCs are going to be like trucks," Jobs said. He noted that he believes traditional computers will remain, but will eventually represent a smaller number of users.
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66 Comments
I can believe this. If iPads get most of the software features of computers, there won't be much of a point lugging or even accessing my Macbook Pro, even if it's remotely from school to home.
Seriously...the iPad (and other devices) are causing a drop in RAM prices? Seriously?
There are over 1 million computers built new EVERY DAY....and the iPad is causing RAM prices to drop....right. Computer production is at an all time high. Yes, the growth has slowed but total sales are still up.
Maybe, just maybe, it is because last year RAM prices reached a high point and multiple companies jumped on the bandwagon and built more factories to produce RAM....thus we have a higher supply. Just maybe.
Don't get me wrong...I'm loving my iPad but I wouldn't go as far as to say the price of RAM is dropping caused by people purchasing iPads instead of computers.
I have yet to meet someone who replaced their computer with an iPad.
So, sounds like it is time for me to bump my MacBook up to 8GB....
... Mac sales help drive down the price of Blu-Ray drives. There is now an oversupply of Blu-Ray drives in the market because there is increased demand for Macs which don't use these drives!
I mean, volumes of iPad are quite insignificant in comparison to the overall PC market - maybe things will change, but still long way from that.
I think a more reasonable explanation would be that people are not really migrating to Windows 7, and PC sales are not picking up as much as they would otherwise. Over 80% of the Windows installed base is on XP, which has not even been available for a year now.
I would actually think slowing PC sales are a signal of something even bigger in the marketplace... people are getting sick of Windows, with all the viruses, spyware, etc. But because of typical inertia, they are not ready to make the jump to Mac yet. Exploding Mac sales are an indication that some of these people are willing to overcome inertia. This is verified by Steve Job's statement that over 50% of new Mac buyers are switchers.
In a couple of years, this could become a flood, and we could see serious market share increases for Mac.
... Mac sales help drive down the price of Blu-Ray drives. There is now an oversupply of Blu-Ray drives in the market because there is increased demand for Macs which don't use these drives!
That is not a correct comparison at all. Macs were never expected to have BR drives. And anyways, BR drives manufacturing chain is nothing like manufacturing of memory.
1) This report does not say that prices have fallen, but rather, are expected to fall. Orders for memory are placed months and years in advance (especially with the tightening of supply in the past few years). And capacity planning is done many years in advance.
2) Not more than a few months ago, 2010/2011 were expected to become the "year of the netbook". People were extremely bullish about it. However, literally, over a few months after the release of the iPad, the market has greatly soured. The ACER president admitted as much.
3) But its not just the iPad sales that is the issue, but rather, the fact that everyone else will be coming out with their own iPad competitors, and promoting them ahead of netbooks. Netbook sales may not take a dive (I think they will) but will seriously undersell expectations from not even a year ago.
That is not a correct comparison at all. Macs were never expected to have BR drives. And anyways, BR drives manufacturing chain is nothing like manufacturing of memory.
1) This report does not say that prices have fallen, but rather, are expected to fall. Orders for memory are placed months and years in advance (especially with the tightening of supply in the past few years). And capacity planning is done many years in advance.
2) Not more than a few months ago, 2010/2011 were expected to become the "year of the netbook". People were extremely bullish about it. However, literally, over a few months after the release of the iPad, the market has greatly soured. The ACER president admitted as much.
3) But its not just the iPad sales that is the issue, but rather, the fact that everyone else will be coming out with their own iPad competitors, and promoting them ahead of netbooks. Netbook sales may not take a dive (I think they will) but will seriously undersell expectations from not even a year ago.
Ah. Someone who actually read the article! How refreshing (seriously).