Demand for tablet DRAM explodes

Tablet market expansion beyond iPad prompts surge in memory sales

The global market for dynamic random access memory (DRAM) for media tablets is tipped to expand to nine times its size this year, according to new predictions from IHS iSuppli.

Mike Howard, principal analyst for DRAM and other memory products at IHS iSuppli, said tablet shipments are soaring - putting pressure on DRAM suppliers.

"Tablets are gaining increasing prominence in the DRAM market," Howard said. "The iPad, which has single-handedly dominated the tablet business since its introduction last year, will account for the bulk of the DRAM demand in the market in 2011 and the following years. However, competition to the iPad is seeping into the market, driving further DRAM demand."

IPad competitors on the market now include Samsung's Galaxy Tab, Motorola's Xoom, RIM's PlayBook and the HP TouchPad.

Although none of these entrants has yet seriously endangered the iPad's hegemony, an upcoming device from online retailer Amazon may, Howard added. This could drive even more DRAM demand.

"Unofficial reports of a new tablet device being readied by Amazon to go head to head with the iPad bodes nothing but good news for the DRAM market," he said.

The US-based analyst's figures suggest that tablets this year will consume 333.7 million Gbits of DRAM, up from 37.3 million Gbits in 2010. DRAM demand from tablets will vault to 1.1 billion gigabits in 2012 and continue to climb fast for the following four years.

Tablet shipments this year are projected by IHS iSuppli to reach 63.2 million units, up from 17.5 million in 2010, hitting 113.9 million units next year.