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DDR2 memory prices have shot up by almost 15 percent, while those of DDR1 have risen by 40 percent during the last 30 days. At the same time, LCD prices have slipped by around 20 percent since January. Market pundits believe that while the memory prices will remain stable, LCD monitor prices are expected to firm up over the next couple of months.
Commenting on the trend, Manish Bakshi of Babaji Enterprise said, “Memory for both notebooks and desktops computers have moved up steeply by an average 15 percent after bottoming out in early January. LCD monitor prices, however, have taken a beating.”
A report by market research firm iSupply indicates that the price drop in LCD panels is largely due to the industry’s worst period of oversupply during Q42008. This oversupply forced both monitor makers and LCD OEMs to slash prices.
“What we have witnessed in the past two months is part of the regular cycle, where supply overtook demand. From March we will see prices firming up, and we will see prices going up month on month,” said R Manikandan, General Manager, Sales & Marketing, IT Division, LG Electronics India.
Memory prices shot up following reports of manufacturers cutting down on production, as well as due to traditional supply tightness around the Chinese New Year. DRAM Exchange however does not expect that memory prices will go up any further, as demand continues to be low despite lower production. |