DRAM prices to keep falling in first half of 2011

By on November 25, 2010, 2:45 PM
The price of DRAM will likely keep falling throughout the first half of next year before a recovery takes hold, according to the latest report from DRAMeXchange. The wholesale price of a 2GB DDR3 module has dropped 46 percent since the start of the year, from $46.50 to around $25 now, and it could drop to as low as $20 by the end of the year.

The trend will continue due to a combination manufacturers being able to increase output thanks to the use of immersion scanner technology that improves yields in their fabrication plants and the unusually low demand for memory. It's basic economics: an increase in supply and a low demand leads to excess supply leads and thus lower prices. That said, economics tells us that this won't last forever, since a lower price means an increase in demand to accommodate the improved yields, and eventually a relatively higher price. Thus, the market will eventually return to equilibrium.

Still, the next year is good news for PC manufacturers and consumers, and not so good news for memory makers. Falling DRAM prices normally mean PC buyers will find bargains when shopping for new computers. While prices will fall for DRAM modules sold in stores, OEMs may choose to offer better overall systems instead of lowering prices. DRAMeXchange says the market will bottom out around the first quarter of 2011, and PC makers will take advantage of the cheaper RAM prices to boost the amount of memory systems ship with. Specifically, it predicts a 36 percent increase for desktops, a 31 percent increase for laptops, and a huge 105 percent increase for netbooks.

User Comments: 12

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alexandrionel said:

I bought one year ago a 4gb ddr2 dual channel kit with 200 lei. That same kit costs now about 300 lei.

What is up with that?

n00bzZy said:

It's DDR2...

Just got myself another 3x2GB Corsair Dominator kit today in addition to the one I already had. Cost me around 80$ less than the same kit did about half a year ago. And now I'm good to go for a couple more years or so

Guest said:

Good news.

Waiting for Sandy and 25nm NAND SSD to come out before I build a new rig. DRAM prices should still be low by then I hope.

Benny26 Benny26, TechSpot Paladin, said:

Gud Gud Gud...Price drops are great news!...unless you're in the stock market of course

Might be tempted to buy another stick or two after i've gotten rid of them moths in my wallet.

Guest said:

in romania, cheapest 2gb ddr3 is 34 $ . :(

Guest said:

You're talking about ddr2, the article is about ddr3. Try searching for ddr1 and you'll have an even bigger surprise.

The actual trend is ddr3, and supposedly the manufacturers slowly move the production lines towards new technology, while older tech will be produced in fewer and fewer numbers, until they stop it completely and all you will be able to find is stored in some warehouse somewhere.

The pricing for dram has seen quite a rise in early 2010, ddr2 speaking, along with the introduction of the ddr3 architecture.

There might also be the case of the producers forcing the market to switch to new products, keeping your old ddr2 platform becoming a costly business.

TeamworkGuy2 said:

This article is about DDR3.

Hard to believe, newegg has 8GB of DDR3 for $90-$100.

A few months ago 8GB DDR3 was like $180, almost 50% less now. Definitely the time to buy if you want DDR3, especially DDR3-1333, 1600 is a little more expensive.

The days of cheap DDR2 has passed, about a year and a half ago I bought 2 GBs of DDR2-533 if my memory serves me, and it was $27, that was cheap, but now DDR3 is just as cheap.

edison5do said:

Yeeaaaa!!! Im Buying G.Skill 4G this holidays, in 2011 im Getting 8Gb.. if it keep going down IĀ'll be very Happy!

mario mario, Ex-TS Developer, said:

Too bad my laptop has a 4gb ram cap.

license27kill license27kill said:

price are going down.. so does the value of the products.. sad

fpsgamerJR62 said:

Our local computer shop now sells DDR3 RAM at slightly lower prices than comparable DDR2. Too bad, my board is already maxxed out at 8 GB of DDR2. Guys, check that article at Tom's Hardware about how to use the extra RAM even if you're using only a 32-bit OS.

Leeky Leeky said:

I'm actually tempted to drop for 8/16GB when it hits its lowest, ready for the spring, as no doubt it'll be at an all time high like always when I purchase the stuff!

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