Oversupply, inventory pressures and the slow worldwide economy continue to pressure prices for DRAM memory chips, pushing them to historic lows.
The DRAMeXchange reported Tuesday that the price for a 1Gb DDR2 chip fell another 7 percent last week, capping a quarter that has seen a price plunge of up to 34 percent.
“This obviously shows that DRAM vendors are dealing with severe inventory pressure and oversupply still remains,” the market monitor said.
In the usually more stable contract market, prices during the second half of November also hit historic lows, with the average price of 1GB and 2GB DDR2 chips down about 10 percent. “The contract price may keep plunging but with limited range,” DRAMeXchange said.
With low-cost netbooks making up a larger share of computer shipments, the average DRAM content per machine may fall, worsening the environment and delaying the recover of prices, the group said.
DRAM is made by companies such as Micron Technology, Samsung and Elpida.
DRAM prices continue falling
