DRAM Market Starts to Stabilize, Maybe

Prices still at half of what they were last year though

By Sebastian Pop on October 13th, 2011 13:13 GMT

Consumers don't have any reason to feel bad about low memory prices, but the makers of DRAM do, though they might finally be able to risk a hope, albeit a small one.

The past year saw DRAM prices fall almost constantly, with the few episodes of rebound far between and just enough to torment memory makers with false hopes that were invariably crushed not much later.

Cumulatively, prices of memory have fallen by roughly 50% since the start of the ongoing year (2011).

This was a direct result of the poor demand on the part of consumers, as well as of overstocked inventories due to rapid advancement to better manufacturing processes.

The fourth and final quarter of the year has arrived, however, and with it some hope, though a very faint one, to put it mildly.

Apparently, during the first half of October, DRAM prices managed not to go any lower, though staying flat wasn't an overly large improvement either.

Still, at least there is one shred of evidence that memory chips could reach some price stability, though there is also every bit of possibility that this is just another temporary reprieve.

The world economy is not doing much better than at the start of the year after all, and even China's National Day holiday went by without any spike in PC shipments.

DRAM makers cut supply a while ago and will go on producing less for some time yet, unsurprisingly.

The one glimmer of hope that exists now is that ultrabooks will sell well, taking random access memory module sales levels (and, by extension, DRAM chip shipments) upward again.

For those who want numbers, 2 GB DDR3 modules slid down 2%, selling for about $10.50 (7.64 Euro) while 4 GB, the new mainstream now, stuck to $19-20 (13.83 – 14.56 Euro).
DRAM prices manage to hold, somehow
   DRAM prices manage to hold, somehow
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