Show is on road, Price - wait

Computex Taipei show

Computex Taipei is now opening, though marketers still cannot foresee well about the coming orders. Spot price is on rising at 128Mb base while 256Mb is actually down. Is there low cost PC demand back to market to cause the 128Mb price up? Or clone market is warming up? Really, no clear evidence yet. Motherboard just expects to have 5% or 7% MoM growth rate, which is not good as marketers previous expect but it also shows the good sign of bottom has past.

Hover over $2?

Actually for the past few days, the price for 128Mb is hovering around $2. Couldn't rise too high due no solid demand yet, couldn't drop too low neither because it still has supporting demand keeping come in for that. Probably could hover over $2 during this Computex and we can check to see if there are good signs of demand to pick up after show over.

Contract downs below $3.

Contract price has further dropped down below $3 for 128Mb based SDRAM and DDR. Some are low to $2.7 level. Original module sells to OEM contract is around the $24 and $48 for 128MB, 256MB respectively. DDR even shows the weak price than SDRAM does.

Contract demand slightly comes back.

Due to excess inventory of the first quarter, OEM contract actually cancel lots of orders at April and May to digest their own inventory. Now it seems they have back to market and begin to take some, either in refill the inventory or there is real demand there.