It appears you have not yet registered with our community. To register please click here...

 
Go Back [M] > Madshrimps > WebNews
DRAM Oversupply Widens, Claims JP Morgan DRAM Oversupply Widens, Claims JP Morgan
Register FAQ Members List Calendar Search Today's Posts Mark Forums Read


DRAM Oversupply Widens, Claims JP Morgan
Reply
 
Thread Tools
Old 30th March 2005, 11:45   #1
Madshrimp
 
jmke's Avatar
 
Join Date: May 2002
Location: 7090/Belgium
Posts: 78,611
jmke has disabled reputation
Default DRAM Oversupply Widens, Claims JP Morgan

Due to fairly high inventory levels and relatively weak demand, the oversupply of dynamic random access memory is likely to widen tangibly from this quarter’s level in the second quarter, claims investment and banking firm JP Morgan. The imbalance can lead to memory price drops and losses among makers and suppliers of DRAM.

Supply for DRAM Exceeds Demand

According to JP Morgan, DRAM saturate is likely to extend from 2% this quarter to 10% next quarter due to weaker demand and increasing inventory. Even though several global manufacturers of memory are transiting some of their production from DDR chips to DDR2 and NAND flash production – which may alleviate some imbalance in the market – JP Morgan believes oversupply will not ease until the fourth quarter, DigiTimes web-site reports.

Some Taiwan-based memory makers are more optimistic than JP Morgan and claim the situation will be easier as early as in May, 2005.

Memory Makers Reportedly Offer Price Protection

Meanwhile some manufacturers of memory from Taiwan and South Korea begin to offer the so-called price protection for their clients. According to a report from Taiwanese press citing sources among DRAM makers, the manufacturers offer to refund the amount of any price-reduction that occurs within one month of purchase (or up to one quarter in some cases). By implementing price protection, the DRAM makers are making it easier for buyers to place additional orders before the memory price hits the bottom.

When asked to comment on the price protection policies, memory manufacturers either refused to comment, or denied the existence of such practices. It is unclear whether it is legal to offer price protection.

While low DRAM prices may favour end-users, they do not favour the market in general, as if memory makers suffer losses, then tend to increase pricing after the crisis is over to compensate, which causes overall instability.

DDR, DDR2 Become Cheaper

At press time average spot price of 256Mb DDR SDRAM memory chip (266MHz or 400MHz) was $2.43 to $2.78 depending on organization, according to DRAMeXchange. The lowest contract price on 256Mb DDR DRAMs was $2.81. In mid-January, 2005, 256Mb memory chips cost approximately $4.07 at spot-market, while the lowest contract price on them was $4.31 per unit. At the end of May, 2004, spot market’s average price of 256Mb DDR memory chips was $4.80, while the year’s peak was at $6.30 per device in early April.

Currently 512Mb 333MHz DRAM device costs $5.44. In mid-January 512Mb DDR chip at 333MHz was quoted at $9.06 in average.

Average spot price of 256Mb DDR2 memory chip at 400MHz and 533MHz was $4.95 and $5.51, respectively, in mid-January, 2005. Common cost of 512Mb DDR2 device at 400MHz and 533MHz today was $10.83 and $11.13, respectively. At press time 256Mb DDR2 chips at 400MHz and 533MHz cost was $4.32 and 4.74, respectively. General quote on the 512Mb DDR2 devices at 400MHz and 533MHz cost was $8.76 and $8.95, respectively, at press time.

http://www.xbitlabs.com/news/memory/...329100253.html
__________________
jmke is offline   Reply With Quote
Old 30th March 2005, 13:53   #2
[M] Reviewer
 
Sidney's Avatar
 
Join Date: Mar 2004
Posts: 15,739
Sidney Freshly Registered
Default

Does anyone remember memory pricings 12-13 years ago after memory chip plant fire in South Korea and the earthquake in Taiwan?
__________________
lazyman

Opteron 165 (2) @2.85 1.42 vcore AMD Stock HSF + Chill Vent II
Sidney is offline   Reply With Quote
Old 30th March 2005, 13:54   #3
[M] Reviewer
 
easypanic's Avatar
 
Join Date: Mar 2003
Posts: 1,823
easypanic Freshly Registered
Default

Not really, I was like 11 years old
__________________
|^^^^^^^^^^^^^^^^^^\||____
|....The BEER TRUCK.... ||||'""|""°\_,__
|___Just for You___l||__|__|___|) _____|
|(@)(@)""""""""""""**|(@)(@)****|(@)|
easypanic is offline   Reply With Quote
Old 30th March 2005, 14:10   #4
[M] Reviewer
 
Sidney's Avatar
 
Join Date: Mar 2004
Posts: 15,739
Sidney Freshly Registered
Default

Quote:
Not really, I was like 11 years old
Don't worry - history tends to repeat itself.
__________________
lazyman

Opteron 165 (2) @2.85 1.42 vcore AMD Stock HSF + Chill Vent II
Sidney is offline   Reply With Quote
Old 30th March 2005, 14:28   #5
Madshrimp
 
jmke's Avatar
 
Join Date: May 2002
Location: 7090/Belgium
Posts: 78,611
jmke has disabled reputation
Default

it's that long ago already? I do remember some crazy memory price increases, doubling/tripling in a few weeks time
__________________
jmke is offline   Reply With Quote
Old 30th March 2005, 15:01   #6
wutske
 
Posts: n/a
Default

Quote:
Originally posted by lazyman
Does anyone remember memory pricings 12-13 years ago after memory chip plant fire in South Korea and the earthquake in Taiwan?
Nope, and I didn't realy cared then, 'cuz I was like 3-4 years young
  Reply With Quote
Reply


Similar Threads
Thread Thread Starter Forum Replies Last Post
DRAMeXchange Predicts DRAM Shortage in Q2 2010 jmke WebNews 0 28th December 2009 10:29
DRAM transition to 50nm will not be cheap jmke WebNews 0 10th September 2008 21:55
Kingston co-founder: DRAM makers have no way out jmke WebNews 0 4th June 2008 11:03
Corsair Advances Speed Grades on DDR2 & DDR3 DRAM Product Lines jmke WebNews 8 20th February 2008 22:56
PSC blames Hynix for recent DRAM price plummet jmke WebNews 2 15th October 2007 19:10
Infineon Gets Out of DRAM Business jmke WebNews 0 2nd April 2006 21:53
DRAM oversupply to continue weighing on pricing Sidney WebNews 2 12th November 2005 14:21
DRAM sales slump as Dramurai play musical chairs Sidney WebNews 0 3rd August 2005 16:50
PlayStation 3 GPU: NV40 and NV50 Hybrid with XDR DRAM, Says Report jmke WebNews 0 28th December 2004 22:12
OCZ and DataSecure LLC Support Posted Precharge and ULL DRAM jmke WebNews 0 6th April 2004 23:41

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off


All times are GMT +1. The time now is 02:54.


Powered by vBulletin® - Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO