Memory Makers to Charge Even Less for Already Cheap RAM
Memory Makers to Charge Even Less for Already Cheap RAM
Posted 07/27/2011 at 7:06am
| by Paul Lilly
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One thing optical drives and low-end memory modules have in common is that both are dirt cheap. You usually won't, for example, have to downgrade your videocard or processor of choice to accommodate an optical drive or memory kit, not unless you're shopping something fancy like a Blu-ray burner or overclocking RAM. Things are about to get better for budget builders as memory makers look to slash the price of 2GB DDR3 modules to levels so low they might as well give them away.
According to news and rumor site DigiTimes, Kingston Technology inked deals to sell its 2GB DDR3 modules for as low as $11 a pop. Industry sources who spoke to DigiTimes say Kingston is just one of many firms reacting to sluggish end-market demand, with others cutting prices to close to $10.
Market research firm DRAMeXchange says DRAM contract prices have already fallen more than 15 percent in July, and will continue to slide in August. The average contract price in the second half of July dropped 9.4 percent to $14.50, according to DRAMeXchange, and if we poke around online, we can see that translates to street pricing as low as $17 per 2GB. Using this as a rough guide, 2GB DDR3 modules could go for around $13 street by the end of summer.
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whathuhitwasntme
July 27, 2011 at 3:50pm
I think you will find two things here:
1. 2gb modules, even if you have a tri channel rig your talking a max of 12gb now, today that is a lot, but it is in recent memory that 4gb was insane, today its average
2. the reason they keep dumping them cheap is because while they all know its a supply an demand market, they also have over head numbers that they have to earn every month or shut down.
until they start dumping prices on 4gb and 8gb modules, I would hold off on calling this a fire sale just yet. Currently they are dumping the low end junk that will just fill up slots and make you wish you had waited for the 4gb dimms
I Jedi
July 27, 2011 at 8:36am
I remember a few months ago that memory makers, as well as MaxPC, were predicting the memory prices were only going to be on the rise for the foreseeable future, what changed? I can understand supply-and-demand being lower, better manufacturing techniques being applied, but why such the dirt-cheap prices coming around now? As Zoandar pointed out, wouldn't these memory makers simply cut production to raise the price on memory modules?
Curiously, I wonder why it is that the memory market is the only one so affected by the onset of the economic downturn? I know PC shipments worldwide have only recently begun climbing back up again, but it seems like the memory market is unusually susceptible to price hikes and downs. Could this be due, in part, to the fact that there are a ton of companies that produce memory, unlike the processor market, where you have two main competitors, as well as in the GPU market?
TerribleToaster
July 27, 2011 at 9:58am
It might have to do with the econmic concepts around "fixed cost" and "variable cost" but I don't know enough about how they do buisness to say more than that.
Have to admit I am curious about what the cost curve for memory makers looks like.
Zoandar
July 27, 2011 at 7:13am
Now that's better news than the recent article speculating that memory makers wanted to cut production to artificially inflate memory prices (again). :)
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