Memory price plunge slashes revenues

Radical price drops by companies trying to grab market share are haemorrhaging retailer revenues
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Plunging price points have caused an ‘inordinate’ drop in revenue growth for DRAM sales in 2007, say the Semiconductor Industry Association (SIA).

This decline has been blamed on certain companies attempting to secure market share at the expense of profits.

The average selling price of DRAM dropped by 33 per cent from December to April, while flash memory prices declined by 35 per cent, despite the fact that shipments have gone up 54 per cent, reported ZDNet.

The SIA claims that revenue will hit £127 billion this year, a 1.8 per cent increase over 2006 – compared to a predicted rise of 10 per cent.

"This is inordinate," said George Scalise, president of the SIA. "This comes at a time with a lot of demand, which is what makes it so unusual."

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