Memory Update: DRAM market continues to free-fall

Global DRAM Market

Memory Update: DRAM market continues to free-fall

The expectation is for weak PC sales in Q4, which should add to the current horrific market conditions

Friday, October 17, 2008

USA: According to Converge Market Insights, the expectation that the DRAM market would bottom out last month did not come to fruition.

Similar to the stock market, the DRAM market continues to free-fall. As previously reported in our September Market Insights, Converge was expecting some market stability heading into October, but this did not occur.

The 1 GB PC800 modules have dropped from $14 to $10.50 over a four-week period, and the 2 GB PC800 have dropped from $29 to $22. Given the condition of the global economy, it does not appear that these prices will rebound anytime soon.

Where is the unseen benefit in all of this activity?

The box builders are paying approximately $21 to put 2 GB of memory in every PC they build. As we head into the holiday season, consumers should begin to see aggressive market pricing for new PCs and notebooks. The expectation is for weak PC sales in the fourth quarter, which should add to the current horrific market conditions.

©CIOL Bureau