According to analysts, the demand for increased RAM might take a toll by the second half of this year
According to the recent reports from Barrons, a major component of the smartphones might see a shortage this year and Apple has made plans to counter any such mishap. This year is yet another important one for the Cupertino giant as some major announcements and launches have been lined up including the highly expected Apple iPhone 6s, the Apple Watch and the iPad Pro.
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For Apple’s upcoming mobile devices, the company is planning to introduce 2 GB RAM finally. Prior to this, Apple’s devices really didn’t feel the need for touching up on the RAM but now that it is enhancing a major component of its devices, it has been building up on stocks amid rumors of shortage. Apple wants to avoid any bottlenecks for its planned launches this year and a stock of supplies seemed like the right thing to do.
According to Summit Research analyst Srini Sundararajan, we might see the 2 GB RAM as soon as the next iPhone and as far as the upcoming Apple Watch is concerned, it is going to come with 0.5 GB worth of RAM onboard. The analysts have predicted that Apple’s bigger 12 inch iPad Pro is most probably going to feature a whopping 4 GB RAM.
Looks like increasing the RAM component has become a trend for this year as the fruit giant is not the only one altering its courses but LG and Samsung have joined in too and will enhance their RAM offerings in the upcoming mobile devices.
RBC Capital’s Doug Freedman issued an Outperform rating for RAM maker Micron and he is of the view that by the second half of this year, the demand for increased RAM is going to take a considerable hike.
“We think the Street expectation is that the ‘6S’ AAPL smartphone could ship 1.5-2GBs (or more) of DRAM in the smartphone, so not only is [Micron] losing unit volume, they also experience less of the impact from increased content,” he wrote. “AAPL will be at 1GB DRAM/ phone for most of the year as they will sell 6/6+ until late September. We estimate that AAPL could sell 60-70mil “6S” units from October-December. So that means that if AAPL sees a 1 GB increase in DRAM and assuming 95% of units are next-gen, that is 65mil more GBs of DRAM (65mil units x 1 additional GB). Total AAPL content would be 130mil gigabytes of DRAM assuming 2GB/phone. Samsung handling ‘at least half’ would be 65mil gigabytes of DRAM content. The magnitude of the shift does not seem to justify the decrease in stock price.”
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