DRAM prices drop even further

It's crazy how cheap DDR3 memort is at the moment, but prices are falling even further.

Early July contract prices for 2GB and 4GB DDR3 memory modules declined another 7% following about 6% decreases in late June, according to data collected by DRAMeXchange. Prices have come near the low levels reached during the previous industry downturn, the price tracker observed.

As chip producers are under growing pressure to clear out their inventories, PC OEMs have gained more bargaining power when negotiating prices, DRAMeXchange pointed out.

In addition, DRAM inventory at PC OEMs had piled up earlier in the second quarter, which thus discouraged them to place orders starting June, DRAMeXchange indicated. But the average inventory level at PC OEMs has slid to 4-6 weeks after recent corrections, DRAMeXchange added.

Contract prices for late July may continue to fall as OEM clients remain reluctant to place orders, DRAMeXchange said.

Early July contract prices for 2GB and 4GB DDR3 modules averaged US$16 and US$31, respectively, down 7.25% and 7.46%, according to DRAMeXchange. Prices for corresponding 1Gb and 2Gb chips were US$0.84 and US$1.78, respectively.