DRAM prices are still in free fall

DRAM CONTRACT PRICES have been falling through-out the second half of August, according to the beancounters at DRAMexchange.

The analysts noted that pricing in the DRAM spot market is also facing a continuing decline as manufacturers just are not keen on buying too much of it.

Late August contract prices for mainstream 1Gb DDR3 chips fell by five percent to between $2.22 and $2.41. This means you can pick up 2GB DDR3 modules for $40 on average.

DRAMexchange said that same-density DDR2 parts have slid by up to two per cent for the same period slashing 2GB DDR3 module prices to $36.

While the fall in DRAM prices is encouraging PC makers to increase memory content per PC, demand is growing at a slower pace than output from the supply side. In other words the DRAM makers are less keen to supply the lower cost chips.

In the spot market, prices for mainstream 1Gb DDR2 and DDR3 chips have fallen to below $2 for DDR2 and and $2.40 for DDR3.

Branded 1Gb DDR2 is $1.99 and same-density DDR3 will set you back $2.35, respectively, on August 30. µ