DRAM price low to last at least a year

Analysts have warned that DRAM prices are unlikely to recover for at least a year thanks to oversupply issues, following lower than anticipated demand for Windows Vista.

Some analysts are predicting that prices are likely to fall further with most in agreement that a bottoming out might occur in the second quarter, with others warning prices might not recover for as much as two years.

One such analyst is Mrrill Lynch’s memory chip specialist, Simon Woo, who compared the downturn to the 1997-98 industry crunch.

Another is memory chip analyst at CLSA, Matt Evans. "We expect DRAM prices to fall another 10 percent in the second quarter of 2008 as PC DRAM content growth slows and inventory rebuilding ends."

Source: PC World