DRAM Prices Drop

[Capper]

Users looking to add more DRAM (dynamic RAM) to their PCs are likely to continue to see bargains throughout May and June, as prices of the memory chips continue to crash.


The contract price of the most widely used DRAM chips, 512M bit, 667MHz DDR2 (double data rate, second generation), slid below US$2 for the first time in the first half of May. The chips dropped 8.8 percent from mid-April to $1.94 per chip, according to DRAMeXchange Technology Inc., a Taiwanese company that runs an online DRAM market.


It's great news for users. Falling DRAM rates can help offset recent increases in prices for LCD (liquid crystal display) panels, and keep PC prices in check. Users wanting to boost their system speed can also add more DRAM at a low cost. These prices aren't likely to last longer than the next few months. At $1.94 each, the chips are well below the $2.50-$3.00 cost of production for chip makers, and they'll likely shift their production strategies in order to reverse the decline. The second half of the year is also the strongest for PC sales, another factor that could stop the current downtrend.


DRAMeXchange said the DRAM market appears to be weaker than expected in May and June, and many companies in the supply chain, including module makers and PC vendors, have already built up inventories. Prices won't rebound until these inventories are worked down.


The fall below $2 was also significant because of its relative ease, noted Gartner Inc. There was less resistance at that psychologically important level than expected, the industry researcher said.


Even though chip makers are producing DRAM at a loss, prices may not rebound quickly. The companies have to continue selling the chips to bring in cash so they can pay for their expensive DRAM factories. They could try shifting some production to other products, such as NAND flash memory and image sensors, where prices are firmer, but it takes months to tweak production lines for such a change. They could miss an uptick in the DRAM market.

PC World - DRAM Prices Drop

[simple_inhibition]

nice! ive noticed how cheap DDR2 has been getting lately and have been thinking of picking up a kit before prices start to climb again

[polobunny]

Yeah I saw that too, they keep dropping and dropping. I've been forced to sell DDR 400 at a higher price than DDR2 667 for a while now.
The price for Kingston DDR 400 512mb (KVR400X64C3A/512) in Canada idle around 65 dollars in retail shops.
The price for Kingston DDR2 667 512 (KVR667D2N5/512) in Canada idle around 48 dollars in retail shops.

:D

[gvblake22]

DDR2 prices are indeed plummeting! I got a 2x1GB kit of SuperTalent DDR2-800 CAS 4 for $136 a week or so ago and I thought it was a good deal... Until it dropped to $130 the next day.
Now you can get most 2GB DDR2-800 CAS 4 kits for around the $130 - $140 range!

[Panda Man]

I saw a cas 5 DDR2 800 1GB x 2 kit for $89 over at the egg one day.

EDIT - here it is.

Newegg.com - APIDA 2GB (2 x 1GB) 240-Pin DDR2 SDRAM DDR2 800 (PC2 6400) Dual Channel Kit Desktop Memory - Retail

I saw other kits under 100 from more reliable manufacturer's as well, but simply because newegg was offering $15 or so off instantly.

[One4yu2c]

Originally Posted by Panda Man

I saw a cas 5 DDR2 800 1GB x 2 kit for $89 over at the egg one day.

Yup, I noticed several 2GB DDR2-800 kits in the sub-$100 pricing territory too, including G.Skill. Heck, even Corsair (XMS) and OCZ have entered the budget pricing tier, with the aid of rebates. Maybe even most surprising was spotting a Crucial Ballistix kit for just $125 shipped, as the Ballistix branding was never known for being particularly cost friendly.

Great time to be a system builder...

[gvblake22]

Originally Posted by One4yu2c

Maybe even most surprising was spotting a Crucial Ballistix kit for just $125 shipped, as the Ballistix branding was never known for being particularly cost friendly.

Great time to be a system builder...

WOW, now that is one heck of a deal! Too bad they're sold out...

[One4yu2c]

Originally Posted by gvblake22

WOW, now that is one heck of a deal! Too bad they're sold out...

You know what's funny, is they were in stock when I posted that link just a little bit ago!