For memory manufacturers, the upcoming expansion of 5G networks and related smartphones will be an opportunity to increase sales of their own products. Increased network bandwidth and increasing resolution of smartphone cameras will raise the requirements for on-board memory. Micron expects growth to be twofold.
According to Needham analysts in their comments, over the past three years, revenue from the sale of memory for smartphones has increased by an average of 30% in the market, but Micron managed to double its profile revenue. According to Micron forecasts, in 2021, 450 million smartphones with 5G support will be sold, and the memory requirements of these devices will increase the volume of sales of this company’s products.
The flagship models of 5G smartphones will be equipped with cameras capable of taking photos with a resolution of 100 megapixels and shoot video in 8K resolution. In terms of gaming performance, they will come close to desktop computers. Such devices will require up to 16 GB of RAM and up to 1 TB of solid state. Models of mid-range smartphones will combine at least 6 GB of RAM and 64 GB of memory such as NAND.
Data centers will also require an increase in memory production, so in the coming years, Micron expects an annual increase in the demand for RAM by 15%, in solid-state – by 30%. Stable growth in demand will also contribute to more predictable prices in the memory market. Representatives of Needham believe that the stock price of Micron Technology in the future will grow by 40%, now it is close to $ 46.
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