After seeing ASPs of DRAM hold stable for a while, a weakening price trend emerged in the first half of June, with stronger downside pressure expected in the later half of the month, according to the latest data.
ASPs for 2GB DDR2 modules dropped 2% to US$40 and 2GB DDR3 posted a mild 0.2% growth to US$45.
Given that PC OEMs have stockpiled sufficient DDR2 inventory and DDR3 has dominated contract market demand, a downhill price trend is expected. Consumer electronics goods such as digital cameras and set-top boxes (STBs) have replaced PCs as the major demand contributor for DDR2.
Going forward, the downhill price trend for DDR2 is expected to continue throughout the third quarter, but the magnitude may not be as strong as expected because some vendors may mull over deals for the entire quarter. Also, stronger demand from the consumer electronics segment may also help prevent sharp ASP erosion.
For the DDR3 segment, most vendors have been able to hold their quotes flat in the first half of June. PC OEMs have been reluctant to make aggressive procurements, given that most have tended to be more conservative about PC sales in the third quarter, plus a sufficient inventory level is on hand. In light of a potential demand weakness, downside ASP pressure may loom in the later half of the month.