DRAM prices jump 21% in third quarter
Average price rises from $1.84 to $2.24 as DRAM demand improves
Jim Carbone -- Purchasing, 10/23/2009 2:10:12 PM
The average price of DRAM rose 21% in the third quarter, the second straight quarter that prices increased, according to researcher iSuppli.
The increase followed a 19% price increase in the second quarter and helped boost global DRAM revenue by 35% in the third quarter. Revenue had risen 19% in the second quarter of the year.
The average price of all densities and architectures of DRAM rose from a $1.54 in the first quarter to $1.84 in the second quarter and then to $2.24 in the third quarter. Until the second quarter of 2009, DRAM prices had declined every quarter since the fourth quarter of 2006 when the average DRAM price was $12.60, according to iSuppli.
Prices are rising because DRAM manufacturers cut back production earlier in the year. At the same time electronics buyers at OEMs started to restock inventories and PC demand grew resulting in increased DRAM demand.
The increase in prices is a sign that the industry is emerging from its long, steady decline, which began in 2007, says Mike Howard, senior analyst DRAM for iSuppli.
The DRAM market decreased by 7.5% in 2007 and plummeted 25.1% in 2008. Despite strong sales in the second and third quarter, revenue will still decline nearly 13% in 2009.
See also: DDR2 DRAM prices surge
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