Says oversupply as vendors rushed to take advantage of price rises will cause fall

iSuppli warns on DRAM pricing

Market research firm iSuppli has said that the sudden rush of production caused by DRAM vendors desperate to benefit from rising prices is likely to have the opposite effect, and cause a fall due to bloated inventories.

Despite some vendors finally making a profit after the market finally bottomed out earlier this year, iSuppli has warned that only the largest firm are likely to do so again during the third quarter.

"The average DRAM contract price is expected to decline by more than ten per cent from the current level by the end of the third quarter," predicted Nam Hyung Kim, director and chief analyst for memory ICs at iSuppli.

"The inventory level in the channel and among PC OEMs has increased compared to the second quarter. Global economic conditions are adding more uncertainty on the demand side of the equation," he warned.

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