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Saturday, February 5, 2011

DDR3 Prices Crash by 50 Percent in Last 45 Days


DDR3 prices have hit an all-time low following sluggish markets and liquidation of stocks by major Far Eastern distributors as the Chinese New Year approaches.
According to the recent report by DRAMExchange, the lowest price for 4GB DDR3 module quoted for the third week of January 2011 was around $32, which is approximately 50 percent lower than the price at the start of December 2010.
“Prices have been steadily dropping. It's a great time to upgrade or buy new memory,” said Suresh Purohit, Manager at Hyderabad-based DRAM India, a memory distributor, “Spot prices for a 4GB DDR3 module has dipped to less than Rs 2,000 from Rs 4,000 during the past 45 days.”
J Ramesh, Manager at Chennai-based Ralco Synergy added, “There is nothing new in the lows we are seeing in the DRAM market. It’s a cyclical trend that we have seen it in the past too. In Q3 and Q4 memory prices usually go up due to the Christmas season, and once that is over, it falls.” 
According to GA Mannan, Country Manager, Corsair India the other reason for the crash in prices is the transition that is happening from 45nm to 32nm manufacturing.
“Leading chip manufacturers have moved a large chunk of their memory manufacturing to 32nm fabs and hence are liquidating the 45nm inventory in order to move completely to the new and more efficient fabrication process,” opined Mannan.
Mannan sees memory prices firming up post the Chinese New Year, which is on February 3, 2011.

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