iSuppli: DRAM Pricing Comes Crashing Down

Paul Lilly

DRAM pricing continues to free fall to new lows, declining yet again in December and plummeting to their lowest point of the year, according to data by market research firm iSuppli .

"DRAM prices in general have been affected by soft PC demand -- especially during the first half of 2010 -- as well as by greater supply of commodity memory following a solid increase in bit shipments during the second half," said Mike Howard, principal analyst for DRAM and memory at iSuppli. "That lethal combination of falling demand and growing supply has coalesced to place a great deal of pressure on DRAM ASPs."

By the second week of December, the contract price for a 2GB DDR3 module was only $21, more than 50 percent below the $44.40 price point of just six months ago. The same trend applies to DDR2 modules, which dropped from $33.80 in June to $21.50 in December.

The good thing about hitting rock bottom is that there's no where to go but up, right? That might be the case, but the DRAM market has yet to completely bottom out. According to Howard, there's absolutely nothing to stop prices from plunging even further during the next six months.

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