2 GB DDR3 Modules Drop to $10 Contract Price

According to Digitimes, contract prices for 2 GB DDR3 modules hit $10.25 in early November, while 4 GB modules went for $18.50. 2 Gb chips sold for $0.70 on the spot market, which is a decrease of about 10 percent over the past two weeks alone.

The reason for the declining prices remains an acute oversupply of memory chips in the market. There is no sign that the situation may change anytime soon as chip makers, apparently, have not reduced their production volumes yet. The floods in Thailand may have amplified the problem as production of devices that would integrate DRAM memory has declined overall.

Digitimes noted that manufacturers such as Nanya said that current DRAM prices are "too low" and that there is no more room for more drops. However, this environment may not correct itself unless inventories and production volumes are adjusted and there is a notable increase in demand for DRAM. There is a good chance that not just PC vendors will be taking advantage of this situation, but end users may also be able to get their hands on much cheaper memory over the next two quarters.