DDR SDRAM Prices to Surge in April

Memory Costs to Uptick by Up to 14% in April

by Anton Shilov
04/01/2004 | 01:04 AM

A report assumes that prices on 256MB DDR SDRAM memory modules will soar by 14% in the first half of April due to exceptionally high demand and lower than expected supply of DRAM products.

 

According to an article over DigiTimes web-site, memory modules from Samsung Electronics, Infineon Technologies and Nanya Technology will see an increase of 10%, 5-6% and 14% respectively. Memory prices typically decline a bit in April, but either the tremendous demand for DRAM encourages the prices to go up, or memory makers intentionally limit the supplies to support the prices on high level.

Analysts believe that the reason for the price climb is tightening supply of memory components, which allows DRAM manufacturers to control the pricing. Even major PC makers, such as Dell and HP, cannot secure enough DDR SDRAM modules for their computers shipping shortly and have to accept higher prices to meet their own demand.

Another reason for the price increase will be natural reduction in supplies to spot markets, as memory makers tend to service their partners among PC makers first.