Memory Prices to Fall

[Suhit Gupta]

<div class='os_post_top_link'><a href='http://story.news.yahoo.com/news?tmpl=story2&u=/nm/20040524/tc_nm/tech_chips_dc' target='_blank'>http://story.news.yahoo.com/news?tmpl=story2&u=/nm/20040524/tc_nm/tech_chips_dc</a><br /><br /></div>"Two companies that dominate the lucrative market for memory chips used in digital cameras and music players are slashing prices to stoke demand and undermine emerging rivals, industry officials and analysts said. The move by Samsung Electronics Co Ltd and Toshiba Corp is a bonanza for consumers snapping up flash memory devices in increasing numbers and sets the stage for a fierce battle in the most profitable part of the memory industry."<br /><br />"South Korea's Samsung said the cuts, which have more than halved prices for some flash chips since October, are a long planned effort to grow the market. But industry experts said Samsung and Japan's Toshiba are taking a pre-emptive strike against companies including Infineon Technologies AG, Hynix Semiconductor Inc and Micron Technology Inc that are trying to break the virtual duopoly."<br /><br />Hey, either way you look at this, it is win-win for us :). The only thing I can't figure out is that the price of RAM apparently went up a month or so ago and now the price of flash memory is falling so drastically. I would expect memory prices, whether flash or RAM to rise and fall simultaneously. This article does not mention RAM at all though :?.

[JTWise]

I remember reading somewhere that RAM prices were goign up because the manufacturers were switching additional capacity to produce flash memory. Since the same companies make both, it looks like a supply/demand issue in a production pipeline with limited capacity. That theory would support the reduction in Flash and increade in RAM.

[hawkeye]

I think I remember reading a while back that some of the plants that produced RAM were being switched over to produce FLASH memory. Thus, the supply of RAM drops and the price then rises, while, FLASH supply increases and the price drops.

I think that's right. But, I never could stay awake in those economics classes.

[Suhit Gupta]

Wow, two very similar answers at the exact same time :). Thanks for the information.

Suhit

[JTWise]

For what it is worth, here is my source of information. Take it with a grain of salt - these guys are kinda shoddy when it comes to reporting :wink:

http://www.digitalmediathoughts.com/forums/viewtopic.php?t=5158