Popularity of Apple's iPad helps drive down PC RAM prices
Prices of dynamic random access memory are expected to fall due to an oversupply in the market, thanks in part to devices like the iPad which use fewer DRAM components than traditional PCs.
Samsung 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.
Samsung 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.
Comments
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....
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).
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.
Insignificant? The iPad alone should represent about 10% of the world wide computer market in Q4 as Apple should sell about 9 million of them in Q4. I suspect even building 9 million of them, they'll have trouble keeping them in stock and wouldn't be at all surprised to learn they increased production again mid quarter.
16 gig wifi + 3G.
I got an iPad and love it, only wish it had more RAM and was more PC-independent. For example, I wish it could be updated without needing iTunes and had a reliable method of importing content without needing a PC and iTunes.
It's because the iPad works in tandem with a typical computer that it can be so compact and affordable. Adding functionality is all well and good but it comes at a price. More complexity, more demands on hardware, more connectors, leads to greater weight, more power consumption, etc. all of which are undesirable in a handheld device. In time clever solutions will expand the funtionality of tablets but right now those solutions are not apparent. Keep in mind that the PC became the mess that it did when software and hardware companies tried to keep adding features consumers said they wanted.
this doesn't add up. i think ram demand has dropped and they're looking someone to blame.
These headlines are ridiculous.
we've been told ipad HAS NOT cannibalize apple's notebook/desktop market... now we're told ipad IS cannibalizing the pc market?!
this doesn't add up. i think ram demand has dropped and they're looking someone to blame.
it's cannibalizing the netbook market.
"I have yet to meet someone who replaced their computer with an iPad"
Well I would say that if I'm going out to spend $500+ on an iPad yes you are correct. I'm not going to replace my iMac, iPad acts as a compliment. But I may delay buying a replacement iMac or laptop for a couple of years. So over time yes it will affect the desktop market and probably the laptop more than the desktop? Really what do I use my desktop for? Only because it has a bigger screen , perhaps word processing and editing photos but I imagine as I use the iPad more and as iPad gets more features the desktop will become less and less needed to the point at which can I REALLY justify its cost?.
it's cannibalizing the netbook market.
More like it's killing the netbook market. Within the next few years netbooks will go the way of CRTs, 8-tracks, and VCRs as other manufacturers put out their tablets using the iPad as a template.
it's cannibalizing the netbook market.
the netbook was a fad anyway. it got left behind by iphone and android phones
Seriously...the iPad (and other devices) are causing a drop in RAM prices? Seriously?
The logic that they are using is that the the high sales of the ipad have led to a drop in netbook and lower level notebook sales. Basically the folks getting a portable to take on the road for email, watching tv/movies got an ipad instead. Which might be true, or it might be more that folks that have a computer at home and never thought about having a 'road' machine were woo'd by the aura of the ipad and changed their minds. Then there's the schools giving students ipads, the etextbooks etc. Again, creating a pro ipad aura perhaps even for kids that figure they would be fine with just using the computer lab on campus
Regardless, the ipad only uses something like a quarter of a gig of ram and not even the faster out there. It's like 2 steps below what is going in notebooks (including Apple's). But the suppliers thought they would get huge sales for all types of notebooks and such. So now there's this huge supply of RAM (so this odd logic goes) that is filling up warehouses. And, says the logic, the suppliers will want to fire sale this RAM, particularly any lower speeds to clear things out.
Which I think they might but not to the degree that is suggested. It all depends on speeds and likelihood that it can be used in future orders. Including even future ipad models.