Today DigiTimes reports Samsung has suspended its DRAM memory supply to PC OEMs like Dell and HP because prices are too low.
Since demand for memory is still weak at the moment, PC OEMs are aggressively requesting for lower quotes. They are now requesting prices of US$14 and US$28 for 512MB and 1GB DDR2 modules, respectively. According to DRAMeXchange, contract prices for 512MB DDR2-533 and a 1GB DDR2-667 modules were US$17.50 and US$35, respectively, in the second half of May.
With some DRAM makers already seeing prices being eroded below production costs, Samsung took the lead in rejecting such low prices by suspending its supply, the sources noted. However, rivals Hynix and Nanya have utilized this chance to increase their supply to PC OEMs.