August 13, 2008

Converge Memory Update

August is not even at the halfway point and the market is already in a spiral. Things are not going well for the DRAM manufacturers as the much anticipated “back to school” boost is nonexistent and the second–half year DRAM rebound is all but nonexistent, at least for now. The 1GIG 800 module has dropped to the $16.00 range, and Converge believes it will drop even further before the end of the month. This is a new low for the 1GIG 800, which was trading around $19.50 on the last day of July. It appears a significant amount of inventory dumping is taking place, as large quantities of parts are available, especially from the Far East. There are also numerous reports in the media stating PC sales are slow and total sales are going to come in below original expectations. Although notebook demand remains strong, there are some signs they, too, may miss forecasted expectations.

Currently 2GIG 800 modules are trading in the $38.00 range and it appears those will also continue to decrease in price. Any further price drop for the 2GIG 800 will also be a new low. Converge believes there will be no positive price movement for the remainder of August. The one upside to this activity is that the spot market can offer significant cost savings to end users if they have a place to put some modules. Gathering 50,000 to 100,000 units of the staple 1GIG 800 module below contract pricing is quite attainable.

Share this blog post:

No comments:

Post a Comment