Since January prices for 512Mb DDR2-667 have shrunk by up to 80 per cent. At the start of the year DRAMeXchange listed the price of DDR2-667 as $6.32, whereas the price on November 12th closed at $1.06.
It is predicted that a resurgence in prices is imminent, with many chipmakers refusing to run at below cost for long. Leading suppliers halted dumping excess stock to downstream channels following Apples increased procurement of NAND flash in recent months, which according to Transcend chairman, Peter Su, has culminated in a trim in corresponding inventory, explains tech website Digitimes.
Although margins are likely to drop further through the fourth quarter, profitability should stay at reasonable levels. Throughout the third quarter gross margin was reported to be around the 12.2 per cent mark.