Feeds

Elpida hikes DRAM prices 20 per cent

Will others follow?

Boost IT visibility and business value

The last time DRAM chip prices fell into a money pit, in 1999, the big four memory makers dug themselves out by working as a team over the next three years.

OK, so it was price-fixing: understandable, but illegal. Samsung, Elpida, Hynix and Infineon were caught out - and in 2005 had to cough up $730m in fines. Later they dropped a few hundred million dollars more to head off class action suits.

Fast forward to 2008 and the Dramurai again are losing money hand over fist. But this time, there's no hot cartel action to claw back the $31bn industry's record losses.

So Elpida is going it alone, and today is telling the world, it's raising prices 20 per cent in April. The Japanese firm will slap on 10 per cent at the beginning of the month and another 10 per cent in the following contract round, two weeks later.

Demand is up and inventory levels are down, according to Bloomberg, and the other memory makers will surely take their cue from Elpida to raise prices. But for how long? Over-supply is endemic, and memory makers need to shift their stocks. This will not change unless a big DRAM maker throws in the towel. ®

Boost IT visibility and business value

More from The Register

next story
Pay to play: The hidden cost of software defined everything
Enter credit card details if you want that system you bought to actually be useful
HP busts out new ProLiant Gen9 servers
Think those are cool? Wait till you get a load of our racks
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
Community chest: Storage firms need to pay open-source debts
Samba implementation? Time to get some devs on the job
Like condoms, data now comes in big and HUGE sizes
Linux Foundation lights a fire under storage devs with new conference
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
prev story

Whitepapers

Gartner critical capabilities for enterprise endpoint backup
Learn why inSync received the highest overall rating from Druva and is the top choice for the mobile workforce.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.