DRAM prices to keep going down until May

We heard back in January that memory prices would drop by 10-20% this quarter. As it turns out, 2GB DDR2-667 memory kits that were selling around the $200 mark in late January can now be nabbed for just over $120 on the retail market, and 512Mb DDR2-667 memory chips are now selling for $2.83 on average.

According to a report by HKPEC, the bargain basement pricing trend in the memory sector isn't going change until the middle of next quarter, because prices are being pushed down by "sluggish demand." As low as prices are, HKEPC predicts that they will drop even further next month. April will mark the end of the first quarter, and the site says U.S. PC makers will seek to avoid inventory buildup in order to show better Q1 fiscal results. The March-April time frame also shows "no sign of a PC replacement cycle in the wake of Vista's release," resulting in low demand. Memory prices aren't expected to rebound until May, HKEPC says.

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