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DRAM Pricing Collapses

By - Source: iSuppli Research Note Via Email | B 3 comments

Prices DDR3 and DDR2 Memory have dropped sharply as a result of weak demand and oversupply of memory chips, according to market research firm iSuppli.

iSuppli said that 2 GB DDR3 module currently carries a contract price of about $21, down from more than $44 in June 2010. 2GB DDR2 memory is also selling in the $21 range, down from about $39 in June. The company said that DDR3 prices are falling at a faster rate as the technology accounts for the majority of the market (60%).

“DRAM prices in general have been affected by soft PC demand - especially during the first half of 2010 - as well as by greater supply of commodity memory following a solid increase in bit shipments during the second half,” iSuppli said. “That lethal combination of falling demand and growing supply has coalesced to place a great deal of pressure on DRAM ASPs.”

PC manufacturers are expected to be taking advantage of this market and load more memory into their products. iSuppli said that DRAM content per PC grew by 24% in 2010 and should add more than 33% this year.

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  • 3 Hide
    Herr_Koos , 10 January 2011 13:18
    Cheap RAM! Yay!!!
  • 2 Hide
    gdilord , 10 January 2011 13:58
    Did the pricing collapse, meaning that the systems determining how RAM is priced have fallen apart, or have RAM prices fallen? ;-)
  • 0 Hide
    wild9 , 10 January 2011 18:25
    I think it will be interesting to see how the falling demand and growing supply actually influence street prices in the UK. On top soaring costs of raw materials and fuel, they've now got a 20% V.A.T. rate.

    So, as of today I priced the following memory module from a well-known retailer. All prices include V.A.T.

    1x INTEGRAL PC2-6400 DDR2-800 DIMM RAM Memory Module - 2GB
    £27 ($41.80 US)

    1x INTEGRAL PC3-10600 DDR3-1333 DIMM RAM Memory Module - 2GB
    £21 ($32.57 US)

    Let's see how much these prices actually come down..