Early August contract quotes for 2GB DDR2 modules have fallen by 8-9%, while the DDR3 segment continued its downward trend, according to the latest data. The pricing indicates lackluster demand from PC OEMs.
Contract prices for 1Gb DDR2 have slid by up to 8.6% to between US$2.03 to US$2.22 for the first half of August, driving the price of 2GB DDR2 modules to US$36.50 on average. Prices for same-density DDR3 parts have also gone down 3.5-4% for the same period pushing 2GB DDR3 modules to US$42. The former shows a larger drop, reflecting that PC and server vendors are making a transition to DDR3.
Market watchers expect the downward contract pricing to encourage PC vendors to increase the memory content of their products. Demand will likely be stimulated later in the third quarter.
On the contrary, spot prices for mainstream 1Gb chips have rebounded since August. branded 1Gb DDR2 and same-density DDR3 parts were quoted at US$2.49 and US$2.13, respectively, as of 11am Taiwan time (UTC+8) August 16, compared to prices closing at US$2.42 and US$2.02 on July 30.
Previous reports cited industry sources as indicating that Kingston Technology recently adjusted upward its prices for DDR2 modules, due to a limited supply of the chips due to major chipmakers moving to scale up their DDR3 production. The pricing strategy also helped boost prices for DDR3 chips.