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  • DDR2 DRAM prices surge

    However, prices will likely decline when PC OEMs switch to DDR3 parts

    Jim Carbone -- Purchasing, 10/21/2009 12:50:30 PM

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    DDR2 DRAM prices surgeSpot market prices for DDR2 DRAM are surging because of increased demand and are now higher than more advanced DDR3 chips, according to researcher Gartner.

    Spot prices for DDR2 DRAMs increased by about 20% last week. Average spot prices across all densities and technologies were up 15.6% compared with the previous week with the average price of $2.47 on a 1Gb equivalent basis, says the researcher.

    The greatest surge in prices has been for DDR2 parts. The average spot market price of a 1Gb 800 DDR2 was about 75¢ cents in December 2008. As of last week, the price ranged from $2.45-$2.60.

    DDR2 prices have increased since July when PC OEMs started to use DDR3 DRAMS. However, because of strong demand DDR3 prices increased. That resulted in PC OEMs   switching back to lower-priced DDR2 DRAMs, says Andrew Norwood, research vice president of Gartner. However, increased DDR2 demand drove up prices. With prices higher for DDR2, PC OEMs will switch back to DDR3 parts. That likely means DDR2 prices will decline and DDR3 prices will increase.

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