Memory prices plummet

Even while Micron Technology prepared to announce quarterly earnings, the cost of memory approached the cost of producing it. The contract wholesale price for 64-megabit DRAM chips has dropped from $7.50 in October to $3.80 today. Spot, or surplus, prices is around $2.85. While analysts believe that the smaller players in memory production could be out of business in the near future, at least some believe the bad news for DRAM makers could work to the advantage of Rambus, which owns rights to the only memory that the Pentium 4 can currently use. A Merrill Lynch analyst says, "In a perverse way, this weakness is good for Rambus. If I can get extra for making Rambus, I will."

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