Memory sector shows no signs of near future recovery as OEMs, VARs and retailers attempt to shift overstock

DRAM market suffers continued decline

DRAM prices have continued their decline despite recent suggestions that the market is about to see a sharp rise in prices due to decreased supply falling well below their recent high at the beginning of August.

According to DRAMeXchange, who monitor the DRAM market, prices dropped nearly ten per cent last week. It said that the decline in prices was largely due to to OEMs, VARs and retailers attempting to shed stocks of DDR2 RAM resulting in the entire market seeing a down turn – one that was so strong it even managed to force down prices of newer DDR3 RAM modules.

DRAMeXchange also said that poor demand during vital ‘back to school’ has added to the overstock of DRAM inventories further forcing down costs as retailers, OEMs and VARs attempt to offload surplus stock.

It also warned that it doesn’t expect supply to increase as it manufacturers fear growth may stall.

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