Global DRAM sales during the first three months of 2010 exceeded the total for the initial six months of 2009, delivering the third highest quarterly DRAM revenues seen over the past 11 years. DRAM prices also rose in the first quarter compared to the fourth quarter of 2009, defying the normal double-digit seasonal decline.
Worldwide DRAM revenues neared US$9.5 billion in the first quarter of 2010, up 9.7% from US$8.7 billion from the fourth quarter of 2009, and up a stunning 181.6% from US$3.4 billion in the first quarter of 2009. The first-quarter 2010 result exceeded the US$7.9 billion total for the entire first half of 2009.
Noted that only two quarters during the past 11 years achieved higher revenue than the first quarter of 2010: the fourth quarter of 2006 at US$10.7 billion, and the first quarter of 2007 at US$9.7 billion.
During the past 20 years, DRAM prices in the first quarter typically fell by an average of 14.7% compared to the previous quarter,indicated. However, prices in the first quarter of 2010 actually rose by 2.9% on a sequential basis.
"Both DRAM shipments and ASPs surged in the first quarter due to stronger-than-anticipated demand for PCs and tight supplies," said Mike Howard, senior analyst, DRAM, for iSuppli. "It doesn't take a math genius to figure out that the combination of larger shipments and higher prices results in rising revenue for the DRAM market. This strong performance bodes well for continued growth in 2010, possibly paving the way for the industry's greatest year in history."

The best year ever?
Several indicators point to continued strength for the DRAM industry. For one, DRAM ASP has maintained its momentum in the second quarter. In fact, many DRAM parts are in such short supply that they are on allocation.
In addition, second-half demand also promises to be even more robust than in the first half as supply growth for the year will not be able to significantly exceed the expansion in demand.
"The first quarter of 2010 has positioned the industry for a bull run, the likes of which haven't been seen more than a decade," Howard said. "The question is no longer if 2010 will be a great year for DRAM, but rather if 2010 will be the greatest year for DRAM."