DRAM prices continue to fall

@ 2004/05/27
AFTER A SPURT of DRAM activity that cost Dell $30 million or so in its last financial quarter, the pesky little semiconductors are continuing to fall in price.
That's according to the latest report from DRAM market watcher iSuppli.

Chief analyst Nam Hyung Kim said that 256Mbit DDR is now less than $5 on the spot market while the outlook is not bright for the manufacturers, the Dramurai.

Kim said in his report that weak demand coupled with unfavourable global economic conditions are likely to have an effect with stock markets declining and oil prices rising.

Inventory is high at the DRAM suppliers, said Kim, while weak demand will hit prices in the near future, he predicts, with spot market continuing to fall during this week.

He said that June is expected to be "the toughest month of 2004 for suppliers, due to weak demand".

The manufacturers may act to keep prices high by throttling supply, Kim warns.

But as we all know, the second quarter is always a bit on the slow side. And he anticipates there will be another market upturn in the second half of this year. ยต

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