31% Price Decline to Slow DRAM Revenues Growth in 2007: iSuppli
What is driving the revenue growth slowdown? The global Average Selling Price(ASP) for DRAM is expected to decline by 31% in 2007, compared to the healthy, but unusual 13% decline in 2006, far below the historical rate of a 30% annual decline.
DRAM bit production growth was at an ample 52% in 2006, bit production growth expected to reach 65% in 2007 as 7 new 300mm DRAM wafer fabs ramping up production.
While iSuppli foresees less shifting of production from DRAM to NAND in 2007, allocation of manufacturing between the two memory types will be the major swing factor determining the health of the memory market in 2007.
More at iSuppli.