DRAM price dip may be just a blip

Demand grows

ComputerWire: IT Industry Intelligence

ICIS-LOR, the commodities price monitoring service, last week detected more weakness in the only recently recovered price of 128Mb DRAM parts.

Volume prices for some parts dipped below $4, a far cry from the sub-$2 mark that hammered chip makers last year, but still a worrying indicator that the DRAM sector's ability to meet demand with increased production is still too healthy for its own good.

However, in the longer term, ICIS-LOR's observation may turn out to simply be a blip in a generally healthy return to higher prices for DRAM makers, according to Gartner.

The US market research outfit believes increased PC sales in the second half will see the DRAM market grow 78.4% to $21.1bn this year - enough to eat up lingering over-supply in the sector.

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