Oversupply triggers drop in RAM prices

The price of DDR3 memory chips used in laptops, desktops and servers will drop over the next two months as memory companies try to clear out excess inventory in a slowing PC market, IT research firm IHS iSuppli reported on Aug. 29.

The average selling price of DDR3 RAM with a 2-gigabit density will reach $1.60 later in the third quarter, down from $2.10 today, said iSuppli in a research note. The price of DDR3 DRAM was about $4.70 in the third quarter a year ago.

The price could plummet further, to $1.25 in the fourth quarter, said Mike Howard, an analyst at iSuppli.

A shortfall in PC demand has softened DDR3 memory pricing this year, and PC makers are unwilling to add more memory to computers as they try to increase profitability in the low-margin market, Howard said. Some memory makers will move excess inventory into the market rapidly, which could lead to further price drops.

The DRAM market fell apart during the economic downturn at the end of 2008, resulting in today's oversupply, according to Howard. "It's a double whammy," he said. "PC growth has slowed down and users aren't demanding more memory."

This version of this story was originally published in Computerworld's print edition. It was adapted from an article that appeared earlier on Computerworld.com.

Read more about hardware in Computerworld's Hardware Topic Center.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags processorsIBMhardwarehardware systemsiSuppliComponents

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

Computerworld (US)
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?