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DRAM Prices Down Due To “Sluggish Demand”: Industry Analyst

The prices for DRAM may continue to drop in the coming periods despite the industry's transformation into an oligopoly, according to a recent market report from TrendForce.

The weak PC shipments in the traditional off-peak quarter, Intel's Broadwell chip announcement delay, and Windows 8.1's inability to effectively stimulate PC sales are all perceived to be contributing to the aforementioned trend, the research firm noted.

According to TrendForce's Assistant Vice President, Avril Wu, the spot price of one of the mainstream DRAM products, DDR3 512Mx8 eTT, has already declined by an estimated 13 percent to $US 3.52. The price of DDR 4Gb 256Mx16 1333/1600MHz, meanwhile, dropped from US$ 4.1 to US$ 3.72, a 9 percent decline.

Even with the current DRAM industry being an oligopoly and dominated by three major DRAM manufacturers (Samsung, SK Hynix, and Micron) Wu believes that the gradual price falls will continue.