Futures Prices of DRAM Memory Dropped 16% in July

According to the research of DRAMechange, a market research company, the price for DRAM memory at the first half of July fell 7%, while the price continued to drop and at the second half of the same month, it declined 9% to 10%. So, the DRAM memory price dropped 15.9% in the whole month, which brings shadow for the prospects of this industry at the second half of this year.

DRAMechange said, the average prices for 2GB, 4GB DDR3 RAM at the end of July are $14.50 and $28, dropping 9.4% and 9.7%, respectively; correspondingly, the prices for 1GB and 2GB chip are $0.75 and $1.59.

DRAMechange further expressed that since continuous inventory adjustment, at present, PC customers are very cautious for the purchase of RAM, the market trading volume has been low since June.

So far, PC market performance in 2011 did not meet expectations, and some companies started to down regulate their shipments goal, meanwhile, the growth of the device memory capacity was slower than expectations as well. Although the third quarter is the traditional sales season, the above problems are still not solving now, which will lead to the falling prices ofDRAMmemory in the third quarter of 2011 further, DRAMechange said.

In order to stimulate customers buying enthusiasm, DRAM manufacturers provides some special preferential offers for their customers. Since they are eager to deal with excess inventory, they plan to bundle selling of 2GB and 4 GB memory with a very low price.

On the basis of some news in this industry, although the memory capacity of PC is still growing now, OEM (original equipment manufacturers) are still unwilling to upgrade their memory chip products from the current 2GB to 4GB, the former is pricing $1 now.

Additionally, some memory vendors have regulated 2GB DDR3 price low to $10-11, corresponding with sales promotion in the sales channel. With the price dropping of chip manufacturers and memory vendors, RAM shipments is growing up to 20-30% in July. However, this growth rate does not meet the optimistic expectations they thought before, which also reflects to us that the demand of actual end-market is still weak.

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