May 29, 2007

Update on the CPU Market

The CPU market is evolving more than ever. The days when desktop processors and Intel ruled the world are slowly taking a different course. To begin with, we are now seeing a much greater volume in mobile requirements and orders than ever before. Even though there are fewer notebook manufacturers than desktop the demand is to the point that AMD has invaded the space Intel once solely owned. AMD mobile requirements and orders have been showering in from both production builds and the service/repair end. That being said, Intel is feeling AMD’s market presence and they too are no longer holding true to their published direct price drops. This is a play right out of AMD’s playbook. More now than ever we are seeing Intel offering new pricing weeks before the official Intel price drop. Many now are getting the June 22nd prices this week, giving Intel an edge over AMD and their customers the best deal for their dollar.

May 21, 2007

The Memory Market

April has come and gone without any hope of a turnaround in the memory market. The only good news is 512M DDR2 UDIMMs only dropped $4-5 over a 30 day period as opposed to the $10-12 drops seen throughout the month of March. Current spot pricing for major 512Ms is in the $19-21 range. Tough to call that good news but we are trying to be optimistic. Unfortunately, 1 GIG DDR2 UDIMMs continued a hefty slide and are currently available in the $36-38 range. That’s a $10-12 drop from the end of March.

We get asked almost every week where is the bottom. And the fact the same question gets asked repeatedly in markets like this means nobody has the answer. It takes a significant spot market buy from a major box builder to indicate we have hit bottom. Until that happens, the free fall will continue. Judging by today’s current spot prices, the amount each density (512M and 1GIG) will drop going forward should be less and less. The DRAM manufacturers are running out of money to give back.

We’ve all been in markets like this before. It’s frustrating and unavoidable but it doesn’t last forever, it just feels that way.

Welcome!

Welcome to Converge Market Insights, the blog designed to give you an up-to-date look into what is happening in the electronics supply chain industry. This blog will offer an insider's look into what is going on around the industry in terms of pricing, inventory, news about the big players in the industry and anything else that may be newsworthy. Read on and enjoy. We look forward to your feedback!