Chaos in the Memory Market Continues?

by Anna Filatova
11/27/2001 | 03:19 PM

The Korean companies, Samsung and Hynix , have already agreed it with the memory modules and "mainstream" PC manufacturers that the prices on 128Mbit SDRAM chipset will be increased by 15%-10%, as to Digitimes. So, it means that the cost of these memory chips will rise from $1.5-$1.6, as it was last week (see this news story) up to $1.8-$1.9 per unit. The leading PC makers haven’t yet given their consent, but they are in the middle of negotiations.
If we take into account that these two memory manufacturers own 22% and 17% of the memory market occupying the first and the third place respectively, it will be very easy to predict how it will tell on the market situation. Although there is some hope left that it will be just a “trial” price increase (for a week or two), and if the market doesn’t accept these prices, then they will be reduced.
As for the prices for memory modules, they are currently quite stable (as to Pricewatch):

• 256MB PC133 SDRAM modules dropped below $20: you can now find these modules selling for $18. The prices for new items range between $18 and $25 (last week the ranging lied between $20 and $25).
• 256MB PC2100 DDR SDRAM modules got a bit more expensive: the prices grew up to $33-$40 (from $30-$35 last week).