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.