Analysts expect a reduction in worldwide DRAM production by six percent as PSC, Elpida and Hynix have decreased production due to weak demand:
According to DRAM Exchange, the move has sparked a general rise in the spot price for DRAM although this was weakened by a lack of demand for memory.
During September the contract price for DRAM fell sharply with average selling price of 1GB SO-DIMM 667MHz dropping by 15.6 percent. This is the biggest decline seen in the past six months.
As the economic recession has begun to spread from the US to Europe and emerging markets, branded PC makers with higher exposure in European markets continued to lower their shipment targets and reduced their DRAM purchases.
Previously accumulated DRAM inventory levels at these branded PC makers continued to remain relatively high, which resulted in even lower demand in the contract market.
Buyers now have stronger bargaining power and several branded PC makers have turned more conservative about the much relied-on Christmas shopping season.