DRAM prices finally rise

DRAM prices finally rise

The downhill slide of DRAM pricing has finally come to an end and prices have begun to climb, but resellers need not worry that we are in for another shortage, nor that prices will continue to rise, according to memory distributors and vendors.

"We saw an increase in DRAM pricing due to chip manufacturers holding back stock," explained Dataram Asia-Pacific product manager Peter Medak. "This resulted in a short-term spike in the DRAM market. Chipmakers obviously tried to increase demand to boost the market. However the spike was only temporary as manufacturers can't hold back stock for a sustained period of time," he said.

Gavin Troxler, national sales manager for Kingston memory distributor Simms, said the price of ValueRAM products had jumped around 40 per cent, but Kingston-branded memory prices would stay the same.

Meanwhile, Simms remains confident the volatile market will settle down.

"We don't foresee any major price increase on the Kingston brand," Troxler said.

The price rise could have been the result of speculation about the future of Hynix Semiconductor rather than an improvement in the market, according to analysts.

David Whitney, general manager of Asia business at Viking, said prices look set to drop once more.

"There has been no increase in demand on a worldwide scale," he said. "In the last four weeks we have seen allocations on 256MB devices and this has started to get tight, but anything below 512MB on a standard DIMM is definitely starting to go down.

"We are not going to see a major drop in the medium term on high-density modules," he added.

With manufacturers currently selling memory below production costs, the price rise is generally seen as a correction that had to happen.

"There is no doubt that the recent all-time-low price points were simply unsustainable," said Dataram regional director for the Asia-Pacific, Andy Molnar. "The spike was a correction in the DRAM market that was required."

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