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Oversupply Sends DRAM Prices To One-Year Low

alphadogg writes "DRAM chip prices reached a one-year low on Tuesday and approached their cheapest ever due to a post-holiday oversupply. The cheap memory chips are pushing PC prices lower too, a Taiwan-based trading platform said. Prices for commodity 1-Gbit DDR3 DRAM chips dropped to an average of $0.84 per unit from historic highs around $2.80 in April and May last year, said Ivan Lin, publicist and editor with DRAMeXchange. Prices hit a record low of $0.81 per chip in March 2009, according to the exchange's daily surveys."

24 of 161 comments (clear)

  1. Calls for a libation by smittyoneeach · · Score: 5, Funny

    Would that Scotch,
    Were so cheap by the DRAM,
    A shave, a shot, a gig;
    Still change for the tram.
    Burma Shave

    --
    Get thee glass eyes, and, like a scurvy politician, seem to see things thou dost not.--King Lear
    1. Re:Calls for a libation by Anonymous Coward · · Score: 2, Insightful

      Who're the fucking killjoys who moderated that Offtopic?!

      That comment is pure gold. Best FP I've seen in a while. And I've made +5 Funny first posts myself, so I believe I might just know what I'm talking about when I say that comment deserved at least +6.

      Mods, get your heads screwed on straight and grow a sense of humour.

      Posting anon because this is offtopic and I know it. Meh.

  2. What Do You Do When Demand Is Satisfied? by eldavojohn · · Score: 2

    DRAM began losing value most recently in December as the Western holiday shopping season wound down, Lin said. But major manufacturers such as Elpida Memory, Powerchip Semiconductor and Samsung Electronics kept pumping out chips to stay competitive, he said.

    Really? They actually employed that strategy? "The market is saturated so we need to make more DRAM to raise profits." I don't understand, were they uninformed about demand being satisfied?

    I mean, are they incapable of curbing production for a quarter? I understand these are huge plants that can't be turned on and off with the flip of a switch but if they're not careful they can hurt themselves indefinitely. I'm glad to be getting dirt cheap DDR3 sticks of memory but I don't want to see those companies compete each other into the red over it. I hope they're right when they say it's seasonal because it sounds like they're in for some tough times all the way through March. Farmers will tell you that flooding the market is a surefire way to destroy your competition as well as yourself ... unless of course you're subsidized but that's a whole other rant.

    --
    My work here is dung.
    1. Re:What Do You Do When Demand Is Satisfied? by FooAtWFU · · Score: 2

      Well, you could overproduce and make mere pennies, or you could curb production and run the risk that your competitors overproduce (and earn pennies) while you earn even less. Collusion to raise prices is hard.

      --
      The World Wide Web is dying. Soon, we shall have only the Internet.
    2. Re:What Do You Do When Demand Is Satisfied? by Arancaytar · · Score: 3, Informative

      Collusion to raise prices is hard.

      Not to mention illegal. :P

    3. Re:What Do You Do When Demand Is Satisfied? by camperdave · · Score: 3, Insightful

      Collusion to raise prices is hard.

      Not to mention illegal. :P

      Tell that to OPEC

      --
      When our name is on the back of your car, we're behind you all the way!
    4. Re:What Do You Do When Demand Is Satisfied? by xystren · · Score: 2

      Go back a decade further to 1987 and I can tell you stories about paying just under $800/meg for my '286...Good old DIPP. needed to buy sets of 9 chips for a bank, 4 banks of 256k to make a megabyte, at ~$18 a chip. Now I look at the price of ram and never complain when I paid that price back then

    5. Re:What Do You Do When Demand Is Satisfied? by Talderas · · Score: 3

      Which is conveniently under US jurisdic....

      oh wait...

      --
      "Lack of speed can be overcome. In the worst case by patience." --Znork
    6. Re:What Do You Do When Demand Is Satisfied? by Kjella · · Score: 2

      Formally, yes. In many markets where there are few actors, the market is transparent and the prices can be changed at will you get a very similar behavior anyway. If one starts a price war the others follow and no one is really gaining ground, they just all lose money on it. Even without actually colluding, they may all understand it's in their own best interest not to start such wars to begin with but rather "invite" to higher prices by raising them for a short while and see if others will follow. Perhaps the most obvious example are gas stations very close to each other, it's mostly a single price broadcast on a big billboard and you can be sure it takes only minutes before they know their competition has changed their prices. They follow each other like a man and his shadow.

      --
      Live today, because you never know what tomorrow brings
  3. Excellent stocking stuffers by PolygamousRanchKid+ · · Score: 3, Funny

    "I got an action figure!" "I got some DRAM chips!" "I got a rock."

    --
    Schroedinger's Brexit: The UK is both in and out of the EU at the same time!
  4. More history by Waffle+Iron · · Score: 4, Insightful

    historic highs around $2.80

    You want historic highs? I remember a DRAM crunch in the 1980s when prices spiked at about $1000 per megabyte. (That's about 150,000 times more costly per bit than current prices.)

    Now, get off my lawn.

    1. Re:More history by Paradise+Pete · · Score: 2

      I paid $125 to upgrade my Atari 400 from 8K to 32K.

  5. Re:DDR2? by rwa2 · · Score: 2

    Fortunately (?) a lot of DDR2-era motherboards were affected by that huge batch of bad capacitors, so it might not be a bad idea to replace your mainboard before one of them fail.

    Of course, I'd still feel compelled to pull together enough spare parts to build a machine around the old mainboard anyway... 'sigh' the many trappings of spending money on things computer-related :-/

  6. Re:Can Joe Sixpack be trusted to install RAM? by clone53421 · · Score: 2

    Can the average PC user (not necessarily the more technically inclined users here on Slashdot) be trusted not to screw anything up inside a desktop or laptop PC when installing RAM sticks?

    I’m inclined to say yeah, most of them could. And the very few who couldn’t probably know it and wouldn’t touch the inside of their computer if their life depended on it, which is okay because they are probably related to half a dozen people who could.

    Yeah, you’re going to have a few truly incompetent and stupid people who take a screwdriver to their PC’s innards and screw things up something serious, but at some point we have to allow natural selection to do its job...

    --
    Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
  7. Re:$2.80 to $0.84? by jimicus · · Score: 4, Informative

    That's probably for the chip, before it's soldered onto a DIMM, before it's even left the factory.

    You'd be amazed how much money needs to be spent to turn it into something you can actually plug into your PC.

  8. Re:Can Joe Sixpack be trusted to install RAM? by LordLimecat · · Score: 3, Insightful

    Can the average PC user....be trusted not to screw anything up inside a desktop or laptop PC when installing RAM sticks?

    From personal experience, yes. Show them a picture of where the ram slot is, how to insert it, and "make sure the notch lines up", and generally they either figure it out (80%), or call for help (20%).

    Non-techies arent morons, you know, and installing ram is intentionally very hard to screw up.

  9. Re:$2.80 to $0.84? by LordLimecat · · Score: 5, Informative

    Its also per gigaBIT, not gigabyte. Multiply by 8 and you have $22.40 sticks dropping to $6.40. I do remember it being around $20 a gig a while ago, and if you check current prices RAM is about $8 a gig now.

  10. Re:DDR2? by CAIMLAS · · Score: 3, Insightful

    Yes, that's right. DDR2 is 'over the precipice' - it's old technology at this point.

    We're kind of at a point similar to where we were in the mid-90s, where the "last generation" (high end 486) systems were just as fast/comparably fast to "this generation" (early Pentium) processors, but RAM support (and availability, utility, etc.) was more significant.

    Right now, any system 3-5 years old is likely to be 'good enough' for most peoples' tasks - all except the most demanding users. The bottleneck will be RAM. On the older systems with only 1-4GB of DDR2 support (or present), this is going to start being a problem.

    We ran into the same thing a couple years ago with DDR, and a couple years before that with PC133: smart and/or financially capable people bought as much of the stuff as they conceived they'd need to keep those systems supplied long enough to replace them outright. (In many cases, I know that DDR RAM held those systems out until quite recently.)

    In most cases, systems with DDR2 are nearing their EOL anyway. They're a bit aged, and very few have been produced OEM in the last year or so. DDR is "gone", so to speak; DDR2 will be there in a year or so, at this rate.

    DDR3 is technically superior to DDR2 in almost every way: it's lower power, runs cooler, and is markedly faster. The chipsets which interface with it are better. Forget DDR2 and move on; it's old tech. Use the systems for what they can do and don't fret it - just replace them if you need to.

    --
    ~/ssh slashdot.org ssh: connect to host slashdot.org port 22: too many beers
  11. Re:DDR2? by Corporate+Troll · · Score: 3, Insightful

    Right now, any system 3-5 years old is likely to be 'good enough' for most peoples' tasks - [...] On the older systems with only 1-4GB of DDR2 support (or present), this is going to start being a problem

    Aren't you contradicting yourself a bit? Those 3-5 year old computer have 1GB or 2GB RAM already and they are being sufficient. I have a laptop, bought in January 2007, so it's 4 years old. I came with 1GB RAM, it now has 2GB RAM because it was a cheap upgrade. It was a laptop on sale because it couldn't reach Vistas requirements, so back then 1GB wasn't all that hot either. So, unless you meant those "demanding users", for a normal user 1GB is enough, 2GB better.. Beyond that not so much.

    I do advocate to take the most RAM you can afford for any machine you have and I have done this since at least 2005. My wifes new iMac has 16GB RAM. Does she need it? No... But the day she thinks it's too slow, I can just say... "Sorry, it's already maxed out, I can't do anything". It gives a bit more headroom, but I've never seen it use more than 4GB (which is what it came with). I'd call it "anti-bitching-insurance". ;-)

    Same thing with my brothers new computer: got 16GB for it. It was two 8GB kits at 75€ or so... Not exactly expensive.

    Will they use it? My wife definitely not. My brother may or may not benefit from it given he plays a lot of games.

    For me? I live on what comes out of the dumpsters and buy left and right stuff to upgrade. Got a AMD Athlon 64 X2 socket 939 somewhere and 4 sticks of 1GB DDR RAM. Bought myself a motherboard that supported that, and whammo, for the price of a new motherboard I got myself a machine that's more than enough for anything I throw at it.

  12. Re:DDR2? by devjoe · · Score: 2

    Yes, this is exactly the issue - 1Gbit ram chips make 1GB ram sticks, and most people are beyond the point of adding more 1GB sticks. The only use for these now is in the two or three 1GB sticks that manufacturers put in new low-end systems. The article is very deceptive since the prices of bigger ram chips/sticks have not fallen by anywhere near as much, though they have fallen.

  13. Re:Can Joe Sixpack be trusted to install RAM? by n1ckml007 · · Score: 2

    I've been preaching the no ESD straps for a long time. I have never killed any electronics with ESD.

  14. Re:DDR2? by Amouth · · Score: 2

    1 Gbit != 1 GB

    8*1Gbit = 1 GB

    last i checked normal form factor could fit 16 chips so 2GB stick... after that you have to go to higher density.

    last i checked 2GB on a stick was still a decent amount.

    --
    '...if only "Jumping to a Conclusion" was an event in the Olympics.'
  15. Re:Can Joe Sixpack be trusted to install RAM? by LordLimecat · · Score: 2

    and that they now have to process a warranty return and lie about using a wrist strap.

    In the last 5 years doing IT work, I have NEVER used a wrist strap. I have probably installed well over a terabyte of RAM, totalling well over 200 sticks, as well as building 30-40 computers, and NEVER had a component fried when I was done with it.

    See, when you open the METAL CASE of a computer, youre touching METAL, and discharging most of the ESD you have built up, so having someone fry a stick of ram in that manner is really pretty rare, especially if you mentioned "hold it by the heat spreader, NOT the pins"-- as even if you do discharge on the heatspreader, I dont think it would do very much.

  16. Re:Can Joe Sixpack be trusted to install RAM? by acohen1 · · Score: 2

    I've never used an ESD strap and have never killed any electronics with ESD. I've even zapped a motherboard while working on carpet (dumb) and it worked for years. I just make sure I touch the case first but i've installed RAM around a hundred times from 30-pin SIMMs on a 486 to triple channel DDR3 on an i7. I once had a 512MB ddr-2600 crucial DIMM cause BSODs and need to be RMAed after about 2 years of use, but i doubt that was ESD related.