Strong PC replacement demand driven by both the consumer and business sectors will cause the supply of DRAM to run low during the second half of 2010, according to A-Data Technology chairman Simon Chen speaking at a recent company event. Chen also said Apple's iPad could be a major price catalyst in the NAND flash market for the year.
Chen expressed optimism about the overall DRAM market in 2010, believing Windows 7 will ignite a wave of replacement in PCs. DRAM prices are about to rise on a sustainable basis, said Chen, adding that the prices will reach the year's lowest level in the first quarter.
DRAM demand may start outpacing supply by 1-2% in the second quarter despite the traditional slow season, according to Chen. Tight supply is expected to remain through the second half of the year, Chen indicated.
In addition, Chen echoed DRAMeXchange in saying there is potential for the iPad to ignite the NAND flash market. The research firm said in a January report that iPad would consume about 6% of total NAND flash demand in 2010.
Chen forecast A-Data will likely generate sequential revenue growth through the fourth quarter of 2010. The memory module maker expects revenues for the first quarter to be the year's lowest.
A-Data aims to generate record revenues in 2010, with both gross margins and profits significantly higher than 2009 levels, according to Chen. The module house's current record is NT$44 billion (US$1.37 billion) that was reached in 2006.