RAM memory prices to drop 20 percent

Posted on Friday, Jan 26 2007 @ 21:47 CET by Thomas De Maesschalck
Japanese memory maker Elpida predicts prices of memory will drop 20 percent this quarter:
Elpida reports record sales and profits in the fourth quarter of 2006, attributing the strong records to capacity expansion at its E300 fab and more procurement from foundry partners. Cost reductions also contributed to profitability and prices of DDR2 stayed stable in the fourth quarter, the company said.

Although projecting a 20% on quarter bit growth in the first quarter of 2007, Elpida said DRAM ASP is not going to reduce by less than 10%. This is contrary to expectations "on the street" for a 10% on quarter ASP drop.

However, the Japanese chipmaker does note that price drop for PC OEMs will not be as much as 20% as demand for Windows Vista is strong and prices should sustain stability in this sense. Already negotiating prices with OEMs for February, Elpida did, however, see some customers request reductions up to 20%.

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Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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