RAM prices are falling

FREE FALL is a good description for DDR2 and DDR3 contract prices that are falling faster than a team of parachuting elephants that have forgotten to pack their parachutes.

For 2GB DDR2 modules, prices have fallen by eight to nine per cent and DDR3 by 3.5 per cent, which according to beancounters at DRAMexchange is because of poor demand from PC OEMs. The manufacturers can now pick up 1Gb DDR2 for $2.03 and 2GB DDR2 modules for $36.50 on average.

People in the know, and the strokers of beards think that since DRAM prices are so low, PC vendors will seek to increase the memory content of their products ensuring that demand picks up in the next quarter.

However DRAMexchange thinks that idea is pants as spot prices for mainstream 1Gb chips have gone up since August. It points to brand value having an affect on prices with branded 1Gb DDR2 and same-density DDR3 parts getting higher prices at $2.49 and $2.13, respectively.

DRAMexchange noted that Kingston Technology recently adjusted upward its prices for DDR2 modules, due to a limited supply of the chips due to major chipmakers moving to scale up their DDR3 production. µ