Memory prices to stay low for the rest of the year

— 10:59 AM on October 19, 2007

Earlier this year when when system memory prices started going south, analysts and industry players alike were predicting the trend would slow down and reverse in the second half of this year. However, DRAM prices are as low as ever and show no signs of going back up.

DigiTimes has published a report about the state of the memory industry, which it says is "currently in [a] state of industry-wide loss." Contract prices for 512Mb (64MB) DDR2 memory chips were sitting pretty at $5.88 per chip in the first half of January this year, but they plummeted throughout this year and hit $1.31 per chip in the first half of October. At that price, chips for a 1GB DDR2 module only cost $20.96. We're seeing that trend affect brand-name memory prices, with Newegg selling 2GB Corsair DDR2-667 memory kits for only $49.99 each.

Memory makers aren't optimistic about price increases, either. DigiTimes' report quotes Samsung as predicting that DRAM prices "should maintain weak through the rest of 2007." The report also says some analysts predict Taiwanese DRAM makers will see a combined loss of over $10 million TWD, or $30.6 million USD, from now until the end of the year as a result.

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