Contract quotes for 2GB DDR3 memory modules have dropped 2.7% to average US$43.90 in the second half of April, while prices for 2GB DDR2 parts have slid 1.5% to US$41 on average, according to report. Late April prices for 1Gb DDR2 and same-density DDR3 chips have averaged US$2.44 and US$2.62, respectively.
PC OEMs have become reluctant to consume DRAM chips, which are now priced higher than their acceptable levels, inSpectrum observed. Some have undertaken measures, such as to lower memory content per box in select products, to keep their production costs under control. However, this has had little impact on late April prices for 2GB DDR3 modules, implying that supply remains significantly below demand, said the price tracker.
Contract prices for mainstream DDR3 modules should be flat or drop slightly in the short run, as the pricing has little room to drop dramatically, indicated. PC OEMs are engaging in an aggressive migration to DDR3, while DRAM module makers have begun to procure more of the chips.
As for DDR2, a mild drop in contract prices was due to recent downward price corrections for the chip at the spot market, according to report. Buying incentives from some first-tier buyers have also turned weak, as well as module makers' cautious attitude towards procurement, indicated.
DDR2 prices at both contract and spot markets reflect soft demand for the chip, someone noted. DDR3 is certain to succeed DDR2 as the dominant DRAM interface in the second quarter of 2010.