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DRAM prices hit by Apple cutbacks

90nm move not helping either
Wed Oct 25 2006, 11:14
THE MOVE FROM 90nm and the fact that Apple has cut back on its chip buying activities is doing some funny things to the prices of DRAM.

According to DRAMeXchange, DDR2 prices are continuing to slip even though DRAM makers can't ship enough as they change their production processes.

However this shortage has been balanced by weaker demand as punters wait for the better technology. The industry has also been hit by Apple slashing the amount of DRAM it wants to buy, which many are seeing as a weakening of demand for its super soaraway iPod.

Theoretically the prices should be below the floor right now, but DRAMeXchange believes the worsening supply is propping up the prices and thinks that they should stay the same until November.

According to DRAMeXchange's monthly report, after the holidays there was a sudden burst in demand which pushed the price up. But that has slowed again because buyers are now demanding lower prices.

DRAMeXchange said that the overall price drop of DDR2 averaged at 1.5 percent last week with branded DDR2 667MHz falling to US$6.40. µ

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