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Sharp decline in prices blamed on over supply and lack of demand

DRAM prices fall 25 per cent

A large excess of DRAM in the channel and sluggish demand have seen DRAM prices drop 25 per cent in a matter of weeks, according to DRAMeXchange.

The contract price of 512Mb DDR2 667MHz DRAM fell to $1.31 each, a new low this year according to the site. It noted that the previous low had been $1.75.

It blamed the fall on a week-long national holiday in China, where the majority of DRAM contract purchasing happens, owing to the fact that the majority of PCs are assembled there.

DRAMeXchange added that the contract price had fallen 79.4 per cent so far this year.

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