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Oversupply in DRAM mkt, revenue to reach $29 bn in 2012

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CIOL Bureau
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BANGALORE, INDIA: Due to the global economic uncertainty in the last few years and the development of newer applications that require less memory has led oversupply of DRAM in the market and a corresponding drop in price, says a report released by business intelligence experts of GBI Research.

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Due to sharp decline in prices, manufacturers are selling memory devices, lesser than the production cost. To reduce expenses, manufacturers have been producing DRAM at 100 percent factory capacity.

Sales revenue of the DRAM market is likely to reach $29 billion in 2012. In 2010, the DRAM market hiked  at $37.31 billion but it plunged to $29.47 billion in 2011. 2010 recorded sales of 16.39 billion units while the final figure for 2012 is expected to be as high as 32 billion units.

According to GBI Research, controlling supply and demand is necessary for the future of DRAM manufacturing companies.

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