DRAM oversupply to continue weighing on pricing

Sidney · 12th November 2005, 07:21

With global DRAM output continuing to grow, oversupply in the DDR and DDR2 segments will worsen over the upcoming months, and the effects can be expected to weigh on memory price trends in both the contract and spot markets, memory research specialist InSpectrum indicated.

InSpectrum noted that the output ramp from both Taiwan and US makers were fairly stable in October, while a Germany-based memory maker reported output growth from its production partners. Japan and Korea based vendors, in the meantime, continue to report escalating output.

Contract prices in the second quarter of November should drop further as some PC OEMs may receive special offers from memory makers. The highly volatile spot market should see limited transactions, as heavy trading may expose traders to dramatic price drops, of up to 5% in single day, InSpectrum predicted.

http://www.digitimes.com/bits_chips/a20051111PR202.html

Sidney · 12th November 2005, 07:28

Should the price of performance DD2/DDR1 trickle down to the reflected OEM pricing, it will be a good time to get a pair or two before they readjust production rate. Then again, once tooling is up and running it will be very difficult to slow down unless demand increases. Pushing for 2GB system requirement is certainly without any cynical thought. Perhaps, a price war will be nice at the retail level before the shopping season.

jmke · 12th November 2005, 15:21

price wars are always nice, as long as the product quality doesn't suffer

12th November 2005, 07:21	#1
Sidney Member Join Date: Mar 2004 Posts: 15,738	DRAM oversupply to continue weighing on pricing With global DRAM output continuing to grow, oversupply in the DDR and DDR2 segments will worsen over the upcoming months, and the effects can be expected to weigh on memory price trends in both the contract and spot markets, memory research specialist InSpectrum indicated. InSpectrum noted that the output ramp from both Taiwan and US makers were fairly stable in October, while a Germany-based memory maker reported output growth from its production partners. Japan and Korea based vendors, in the meantime, continue to report escalating output. Contract prices in the second quarter of November should drop further as some PC OEMs may receive special offers from memory makers. The highly volatile spot market should see limited transactions, as heavy trading may expose traders to dramatic price drops, of up to 5% in single day, InSpectrum predicted. http://www.digitimes.com/bits_chips/a20051111PR202.html __________________ lazyman Opteron 165 (2) @2.85 1.42 vcore AMD Stock HSF + Chill Vent II

12th November 2005, 07:28	#2
Sidney Member Join Date: Mar 2004 Posts: 15,738	Should the price of performance DD2/DDR1 trickle down to the reflected OEM pricing, it will be a good time to get a pair or two before they readjust production rate. Then again, once tooling is up and running it will be very difficult to slow down unless demand increases. Pushing for 2GB system requirement is certainly without any cynical thought. Perhaps, a price war will be nice at the retail level before the shopping season. __________________ lazyman Opteron 165 (2) @2.85 1.42 vcore AMD Stock HSF + Chill Vent II

12th November 2005, 15:21	#3
jmke Madshrimp Join Date: May 2002 Location: 7090/Belgium Posts: 79,022	price wars are always nice, as long as the product quality doesn't suffer __________________

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