Memory Prices Likely to Plummet, Says Analyst

[Mac Cool]

Timely, since I just asked the question a week or so ago, if memory prices
would fall for x-mas. I guess they will.

http://www.xbitlabs.com/news/memory/display/20040826065050.html

Memory Prices Likely to Plummet, Says Analyst
DRAM Pricing Plunge Caused by Increased Shipments Expected

by Anton Shilov
08/26/2004 | 06:53 AM

Despite of expectations, memory prices are unlikely to increase due to
ongoing ramp of DRAM shipments by world’s leading maker of memory used in
computers, claims Nam Hyung Kim, a principal analyst with iSuppli Corp.,
an El Segundo, California-based research firm.

Memory makers have reportedly tried to reallocate manufacturing capacities
from DRAM to more profitable flash or other components, which limited
supply growth of DRAM in May, June and July, causing an uptick in pricing.
In August, however, leading memory makers, such as Samsung, Hynix, Micron
and Infineon, started to ramp up supplies of memory for personal computers
by substantial percent, which is likely to cause memory pricing plunge.
<more on xbitlabs.com>

 

[Stillwater]

Too bad price fixing erases the predictability of traditional economics . .
..

 

[Same Guy]

Sat, 28 Aug 2004 02:49:12 -0700: written by "Stillwater"

Too bad price fixing erases the predictability of traditional economics . .

I wouldn't call it price fixing, it is more like trying to recoup the
expenses for the stock that has already be purchased at the higher
price.

I work for a company that manufactures and sells flash memory devices.

At the moment, I'm sitting on 80 pieces of 1GB merchandise and our next
build cost will be *significantly* lower than what it cost for us to
build this current stock. As such, I'll need to keep my prices high
until I move all this old stock since losing money isn't good business.

The businesses that lower their prices first are either buying
market-share, have better JIT inventory management, or a combination of
both.