The unsustainable DRAM memory chip market trudged through the fourth quarter with prices falling a sharper than expected 38 percent and shipments unchanged with the third quarter.
In other words, the typically strong fourth quarter turned into a bust. Even normally resilient market share leader Samsung lost share and posted a loss, said iSuppli.
Oversupply of this chip used in computers is likely to continue those losses into the first quarter.
The big winners of the quarter were Micron Technology, which gained share as its revenue decline was the smallest among major players, and Hynix, which also increased its share. Elpida lost share.
DRAM suppliers have been selling below cost since the fourth quarter of 2007, iSuppli said. That may not change soon. Total operating losses in the fourth quarter were $2.6 billion, more than for all of 2007.
The research firm cut its 2009 forecast. It now projects sales will fall 15 percent this year to $20 billion. Average selling price per megabyte will fall 31 percent.
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