Price gap between DDR2 and DDR3 to shrink to 10% this year

Some DRAM makers believe that DDR3 will grow its role more obviously in 2008, after seeing DDR2 remain the mainstream memory standard for several years. The relatively high price premium of DDR3 over DDR2 so far has however discouraged PC OEMs to migrate. The price gap should shrink more noticeably this year, they projected, due to the aggressive push by Intel.

The DRAM makers expect some PC vendors will be subsidized by Intel to migrate to DDR3-based platforms, and this should help encourage the entire industry to migrate accordingly. They noted that some PC vendors will only introduce DDR3-based systems in the second half of the year. About 30% of new PCs shipping worldwide will be powered by DDR3 in the fourth quarter of 2008, they estimated.

DRAM makers, who have already seen growing consumer interest in DDR3, will also count on DDR3 production to free them from the stiff DDR2 pricing environment. As DRAM makers are expect to speed up their pace over DDR3 production, the price premium between the two standards of memory is expected to shrink to 10% in the second half of the year, the DRAM makers commented.