Prices for DRAM have been dropping like a rock for months now, but last week the market research team over at the DRAMeXchange warned things were likely to get even worse . The problem is simple, far too much supply and not nearly enough demand. The problem has been further compounded by the flooding in Thailand, which as you’ve heard a million times by now, trickles over into just about every aspect of the PC industry. Lower prices are great for consumers, but we have to admit, we were starting to get a bit worried. DRAM manufacturers were already running on razor thin margins, and the low spot price for DDR3 threatened to push some of the smaller players out of the market completely. Short term gain for consumers yes, but it could end up causing long term pain as the competition thins out.
A solution is on the horizon however , and while it’s far from ideal, it’s better than a complete collapse.
In an attempt to help relieve oversupply issues in the channel, DRAM manufacturer Elpida announced it would be cutting production for at least one month, and possibly more if needed to help stabilize the market. The news as intended will no doubt help stabilize the market, but prices, at least in the short term will likely remain low. As of noon Friday the spot price for branded 2Gb DDR3 modules dropped 1% to US$0.73, while white-branded 2Gb sticks decreased by 2% to US$0.65.
So prices didn’t skyrocket up based on the news, but they aren’t likely to drop much farther either. If you’ve been planning on stocking up on DDR3 modules we suggest hitting up your e-tailer of choice sooner rather than later. Newegg is currently selling 16GB of brand name modules for under $75.