DigiTimes heard rumors that Kingston has lowered quotes for its DRAM modules in response to sluggish demand, and that several other module companies have dropped their pricing as well, albeit only slightly. The site heard that if any of the large DRAM makers initiates a big price cut, it may result in a domino effect in the market.
DRAM demand has been negatively affected by continued sluggish PC sales and disappointing sales of tablets and smartphones since the second half of 2013, according to industry sources. DRAM inventory held by PC OEMs as well as module makers has piled up, raising concerns that an inventory correction will take place in the industry.
As a result of weaker-than-expected demand, contract quotes for DRAM started to fall recently with prices for 2Gb and 4Gb DDR3 chips approaching US$1.50 and US$3, respectively, the sources indicated.
SK Hynix earlier in the third quarter already cut its quotes for DRAM chips, the sources observed. Module firm Kingston followed suit by lowering its product prices starting August, the sources said.