Saturday, June 28th 2008

DRAM Prices Plummet, Micron Technology Posts Record Loss

With many economies under inflation and other factors influencing a weak demand, these are perhaps the worst days for several companies involved in manufacture, marketing and distribution of DRAM and related products. While on the surface, all the consumer can see is a falling market price, in reality it is a composed chaos.

DigiTimes reports a falling demand for DRAM in the Asia-Pacific region as the Chinese government cracks down on users of contraband DRAM products brought in from manufacturing states. The government crackdown began with the thousands of internet-shacks and the components (both hardware and software) they used. All this comes ahead of the 2008 Beijing Olympics as a 'purge drive'. As a result, thousands of internet-shacks have been closed, bans have been imposed on the use of contraband hardware, most of which consist of DRAM related hardware. China also brought about changes in their customs routines and procedures making it extremely complicated for importers, stepping up waiting queues, affecting markets and more importantly, dampening demand.

Micron Technology, regarded as the American DRAM perfectionists, have posted record losses according to a recent Bloomberg report. The net loss expanded to $236 million, or 30 cents a share, from $225 million, or 29 cents, a year earlier. Sales rose 16 percent to $1.5 billion in the period ended May 29, the Boise, Idaho-based company said in its filing.

Micron competes with Samsung Electronics, the world's second-largest semiconductor manufacturer, which uses profits from its mobile-phone business and flat-panel display unit to continue to invest in new production even when prices are low. Unfortunately, lack of investment and poor market is hitting the rest of the DRAM industry hard.

What does this all mean to you as a consumer? This is probably the best time to buy memory products, be it flash memory for mobile-phones, cameras and other gadgets or computer memory upgrades. Weak demands trigger price-drops as an immediate reaction. If the market doesn't respond to price-drops either, companies cease to invest in PD and R&D, go into clearance mode. This is comparable to a plant in wilting.With inputs from Bloomberg and DigiTimes
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15 Comments on DRAM Prices Plummet, Micron Technology Posts Record Loss

#1
Cold Storm
Battosai
I can believe this.. I had to run out and buy a bigger flash drive for me to flash to the rampage bios... 4gb one cost me $19.99... The original price was $59.99
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#2
echo75
bye bye cheap usb sticks, drives and memory.
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#4
Cold Storm
Battosai
They have been down for quite some time. Its been making want to grab some G Skill 1600's myself! and then upgrade to a DDR3 board..
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#5
btarunr
Editor & Senior Moderator
Yes, it makes sense upgrading your memory, as when after the stocks run out, you're not sure if the fresh stocks carry the same low prices.
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#6
Cold Storm
Battosai
by: btarunr
Yes, it makes sense upgrading your memory, as when after the stocks run out, you're not sure if the fresh stocks carry the same low prices.
That is true man. You'll now be able to get DDR3 at a price that is good enough to buy. I'm in love with G Skill with DDR3... But, that is me. And the boards are sweetness also!
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#7
WarEagleAU
Bird of Prey
wow, I think Ill be snatching me up some DDR Transcend AXE ram memory. Id get the Team Dark Microns, but they dont sell those stateside.
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#8
a111087
by: Cold Storm
I can believe this.. I had to run out and buy a bigger flash drive for me to flash to the rampage bios... 4gb one cost me $19.99... The original price was $59.99
lol, I never buy at places like best buy because they are ridiculously overpriced
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#9
TheGuruStud
by: a111087
lol, I never buy at places like best buy because they are ridiculously overpriced
Not to mention that you're nothing but a dumb ass they can rip off (in their eyes).
Posted on Reply
#10

nice ill have to get two more sticks of ram :D
Posted on Edit | Reply
#11
Cold Storm
Battosai
by: a111087
lol, I never buy at places like best buy because they are ridiculously overpriced
Oh, I don't like those places ether... But, I thought I needed another one... go went out, and found it for that... Couldn't resist!
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#12
a111087
by: TheGuruStud
Not to mention that you're nothing but a dumb ass they can rip off (in their eyes).
for a second there i though you call me ... :)
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#13
TheGuruStud
by: a111087
for a second there i though you call me ... :)
Yeah, I had to add that part in parentheses :D
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#14
Triprift
Hmmm i wonder if them saving will come down here to Oz hopefully i could do with some more memory for my cameras :p
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#15
Basard
hasn't the price on ram been dropping since, ehhh, 1980!? quick, buy now before it goes up 2 cents. or wait one month untill it goes down 4 cents.

and how bout that Chinese government--what a bunch of bastards.

um, if you must buy computer parts in a retail store, Walmart (for pete's sake) sells cheaper than "Best" Buy... audigy se at Best Buy-$37, at Walmart-$30... best buy is a nemisis.
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