The DRAM module upgrade and spot markets are shrinking as PCs are loaded with enough memory to run standard applicatins and consumers are buying more branded PCs. To offset the lose revenues, third party DRAM modules makers are entering the OEM market, but have to go through stiffer quality requirements, sources familiar with the market said.

Sources reported that the 30% DRAM modules spot market in the first quarter this year is now down to about 15-20% of the overall DRAM module sales. Companies cited that increasing market share of brand name PCs is the key factor.

The number of DRAM module companies with considerable revenues from the OEM market are only a few, analysts familiar with the industry said. The entry barrier to this market is higher as OEM customers usually have higher quality requirements and tend to source memory directly from DRAM makers. Nevertheless, as more players are getting into the OEM market, the competition is going to heat up even more.

By: DocMemory
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