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

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?