DRAM prices start to tumble

PC memory chip prices are now starting to fall, after a year of steady prices.

Money

Dynamic random access memory (DRAM) has started to drop in price for the first time in over a year, according to a new analyst study.

The Gartner Semiconductor Monday DQ report has shown the first drop in the RAM used for PC memory chips since early 2009 and predicted the decrease will continue throughout the rest of the year.

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"Gartner expects to see mild ASP (average selling price) declines for the remainder of 2010," the report said.

It claimed DRAM had made up 15 per cent of the cost of materials in mid-range PCs thanks to a price hike a few years ago.

It also claimed manufacturers had to be firmer with DRAM makers to get the prices to a more reasonable level.

The price tag for a standard 1GB 1066MHz DDR3 DRAM chip had been set at around the $3 mark for the earlier months of the year but June saw this drop to $2.40.

The drop in cost should consequently lead to a drop in PC prices in the coming months.

A report released earlier this month by analyst firm iSuppli showed the global PC market had grown by almost a quarter in the first three months of 2010, with shipments rising to 81.5 million units from 66.5 million during the same period in 2009.

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