Transcend Information, a large memory module maker from
Peter Shu, chairman of Transcend Information, is reported to have said that “There is no room for price reduction for DDR memory, and DRAM makers have stopped lowering their prices. DDR2 prices have bottom out as well, and the segment does not have room for more price cuts, as the NAND flash segment does,” reports DigiTimes.
Memory pricing has been declining for about a year already, which lowered gross-margins of both module and chip makers. For instance, Transcend’s gross-margin is now 11%-12%, down from the company’s traditional 15%.
At press time average spot price of 256Mb DDR2 SDRAM memory chip (533MHz) was $3.32, whereas a 512Mb device cost $5.58, according to DRAMeXchange. By contrast, average spot price of 256Mb DDR2 memory chip at 400MHz and 533MHz was $4.95 and $5.51, respectively, in mid-January, 2005. Common cost of 512Mb DDR2 device at 400MHz and 533MHz in late March, 2005, was $10.83 and $11.13, respectively. Depending on the speed and organization 256Mb DDR device costs now about $2.40, whereas earlier it cost around $2.80.