DRAM Manufacturers Ramp Up Production
It appears that the DRAM memory market has bottomed out and prices have begun to stabilize.
Manufacturers have reacted almost immediately and there are reports that vendors are increasing their production volume again. Tier 1 manufacturers cut their production volume in Q4 to halt a dramatic price decline.
According to Digitimes, DRAM producers have added 100,000 wafers to their output in Q1 to move towards a balance of supply and demand. Forecasts indicate that DRAM demand may rise by 30 percent in the current quarter. Digitimes said that average selling prices for 4 GB DDR3 DRAM modules have increased by about 6 percent to $18 since Q4. 2 GB DDR3 DRAM also showed higher selling prices than in the last quarter.
Elpida remains a uncertain variable in the DRAM market, which could make a major impact on near-term DRAM pricing. The company recently stated that it was not able to renegotiate its debt, which caused speculation that the company may now be forced to merge with Micron. Elpida still has until March 22 to come up with a solution to address a pile of $4 billion in debt.
Analysts such as Raymond James’s Hans Mosesmann predict that a Elpida will have a "significantly diminished" capacity to produce DRAM, which could push the prices of the memory higher.
fail.....
all of the stuff is flooded and evrybody uses dram, phones computers etc. The very computer you are using is using dram.
How is this not collusion? Wikipedia states collusion is "an agreement among firms to divide the market, set prices, or limit production", and is this not an agreement to limit production?
I'm guessing they didn't actually have any agreement. They each independently had their financial people tell them that there is a dramatic price decline. Heck, they can notice that themselves, we all have. Knowing that there is a price decline, they each independently decided to cut their production simply because the price they will sell might be actually lower than the cost of production, so they would take a loss on each sale and it doesn't take a genius to decide that they should cut production. The key is they each decided independently from the others without any agreement.
Anyway, that's the principle. I'm not saying they didn't have any agreement. They might have had in secret. I'm just saying that it is plausible that they each decided to cut production based on the market condition.
is there anyone who even uses DRAM?
fail.....
all of the stuff is flooded and evrybody uses dram, phones computers etc. The very computer you are using is using dram.
How is this not collusion? Wikipedia states collusion is "an agreement among firms to divide the market, set prices, or limit production", and is this not an agreement to limit production?
i have 8gb of ddr2, and cant realistically get more ram, because it would be cheaper to get a new motherboard and load that up with 16-24gb of ram than to get 16gb of ddr2... what im waiting for right now is for 8gb sticks to come to a reasonable price. im already constantly using 7.5gb+ right now, i don't even have all the programs i want open.
I'm guessing they didn't actually have any agreement. They each independently had their financial people tell them that there is a dramatic price decline. Heck, they can notice that themselves, we all have. Knowing that there is a price decline, they each independently decided to cut their production simply because the price they will sell might be actually lower than the cost of production, so they would take a loss on each sale and it doesn't take a genius to decide that they should cut production. The key is they each decided independently from the others without any agreement.
Anyway, that's the principle. I'm not saying they didn't have any agreement. They might have had in secret. I'm just saying that it is plausible that they each decided to cut production based on the market condition.
But however, I am afraid of my investment getting trumped by the next gen of RAM, whatever it may be. It seems like a new gen of ram comes out every 4/5 years and DDR3 is at the 5 year mark(serious production in 2007).
Oh well, we shall see.
Personally, I am betting more towards the illegal collusion argument here..... seen way too many times these tech companies having 'dirty laundry' come out a few months/years after they do something like this that shows that, yep, they were colluding.
actually at the bottom, 1333 and 1600 are about the same price for 8 GB (2x4GB), at 4 GB (2x2GB), 1600 is cheaper than 1333.
Basic supply and demand. Too much supply, and there will be no demand. Too much demand leaves no supply. They're balancing that out to sell at a good price point. If they didn't (and proceeded to continue pumping out more and more dram that wasn't needed) they wouldn't make enough money to support the continued production of unneeded dram.
This is completely different than collusion. Collusion is if they would limit how much they produce when demand is high. IE if prices were still really high on the ddr3 stuff, and they limited production to pump it higher, that would be collusion. But if it's bottoming out to a point where it's not very profitable, it's not.
You have the right idea, but remember that supply is not based on demand or vice versa, they are independent factors.
It should actually read: too much supply relative to demand, and there is excessive surplus of a product; too much demand, there is a shortage of that product.
Discrepancies in how much the producer is willing to produce and how much the consumer wants to consume are solved by changing the price of the product. All of this can happen without collusion.
If all you do is play games buy a console, some of us edit HD video, the LEDs on my Ballistix Tracer go frikken crazy when I set a batch off
If ssds didn't help gaming would you say other pcs don't need it?
computer illiterate?
Why the crap are people bringing up SSDs here. This is about DRAM, not NAND flash memory.
This is a lot like organized crime, but with a white collar. Hopefully one day these chaps will also get caught in the illegal practices rap.