Good news for smartphone customers. Phones with higher RAM will sell for a cheaper price this year. This is all because of the fall in the prices of the memory chip. It is an end of the chip boom for the investors which had started in the year 2016. Analysts had already predicted the sales growth rate to fall after a year and a half.
In Q4 of 2017, the prices of the high-end memory chip have declined by 5% and it has been assumed that the growth rate will fall even more drastically. The chip-industry is net worth $122 billion and it is considered an outstanding growth since 2016. The industry saw a growth rate of 70% last year although now, the analysts are estimating that the memory chip industry will see a decline in prices if the demand remains strong.
Estimations are that the supply of NAND flash memory will grow up by 43% which will be the reason behind the price drop of 10%. Samsung holds 40% of the chip market and companies like Western Digital, Toshiba Corp, and Micron Technology Inc have increased their output in order to compete with the Korean giant.
Some analysts believe that the chip-market will not crash. Manufacturers are placing more RAM into their smartphones and charging more money. Many smartphone manufacturers are aiming for cheaper memory kits.
According to BNP Paribas (an analyst), the average DRAM memory of new models which were launched in the last quarter has increased by 38% whereas the NAND content measured by gigabyte has jumped up by 84%. This growth rate indicates that the chip-making industry is growing.
What do you feel about the chip-market? Do you think its share will increase? Write your thoughts to us in the comments section below.