Memory makers make almost no profit off their chips anymore

Oct 18, 2012 08:46 GMT  ·  By

A cursory look through online stores has showed us that most memory modules of 4 GB capacity still sell for $17-19 / 17-19 Euro, but analysts say the average price of 4GB DDR3 modules is lower than that.

TrendForce, or more specifically, its research division DRAMeXchange, determined that $16 is actually the average module price. The least expensive fell below even that, to $15.75 / 12.02 Euro.

That means that 2 Gb chips, which the products are made of, sold for $0.83 a piece (0.63 Euro), barely higher than the manufacturing price.

Indeed, some manufacturers sell their chips for zero profit. There are even a few who ship them below manufacturing cost.

Considering all this, it is no wonder that the number of companies that make such memory is lower than last year. That one of the previous market leaders, Elpida, allowed itself to be assimilated just emphasizes the seriousness of the situation.

Windows 8 may lead to a temporary rise in PC and, by extension, RAM sales. Even that might be insufficient to pull DDR3 prices back up though.

Consumers can go ahead and rejoice because of this information.