DRAM Pricing Collapses

iSuppli said that 2 GB DDR3 module currently carries a contract price of about $21, down from more than $44 in June 2010. 2GB DDR2 memory is also selling in the $21 range, down from about $39 in June. The company said that DDR3 prices are falling at a faster rate as the technology accounts for the majority of the market (60%).

“DRAM prices in general have been affected by soft PC demand - especially during the first half of 2010 - as well as by greater supply of commodity memory following a solid increase in bit shipments during the second half,” iSuppli said. “That lethal combination of falling demand and growing supply has coalesced to place a great deal of pressure on DRAM ASPs.”

PC manufacturers are expected to be taking advantage of this market and load more memory into their products. iSuppli said that DRAM content per PC grew by 24% in 2010 and should add more than 33% this year.