Global DRAM revenues declined to $8.64bn in the fourth quarter of 2010, down 20% from $10.78bn in the third quarter, according to DRAMeXchange said Bedford.
The report said that DRAM market took a significant hit in 2010 with DRAM firms adding excess capacity, which led to lower pricing for DRAM.
However, the growing demand for flash memory for data storage on smart phones, tablets and other portable devices is expected to turn-around the Dynamic random-access memory (DRAM) market after sluggish demand in 2010.
The report said that there is optimism in the analyst community that the DRAM market will turn around in the latter half of 2011 as key DRAM companies are taking cautious approach to manufacturing capacity.
Bedford said that last month UBS upgraded Micron Tech citing stabilising DRAM prices on steady demand.
The report revealed that chipmakers are now predicting that 3D chip technology could take the place flash memory in the near future.
The market research firm said that late in 2010 Apple unveiled its first complete product line of laptops relying entirely on flash chips for storing data.
Further, SanDisk which has main chip product is NAND Flash memory has shifted to focus on 3D chip technology and is working with Toshiba on 3D memory chips since 2008.
