Steady uptrend

:: Market sentiment is optimistic

Market sentiment for July is all positive. Motherboard companies are expecting over 10% MoM shipment growth. Chipset companies are holding a good expectation on new chipset's shipment. Even SiS and Via just can support single channel model right now, and facing the competition from Intel's new single channel chipset for 865 serial which will be ready to volume shipment at the end of this month, they are still optimistic on market trend. PC OEM's forecasts do look positive. Channel traders are still highly expecting on uptrend pricing. For DRAM companies they are all facing tight allocation to buyers - PC OEM customers, module makers and traders. Spot price is looking definitely firm- and up- trend this week.

:: Contract prices are expected to rise 5%~10%

Contract price is expected to rise around 5%~10% from previous $30~$32 to $33~$36 for main stream DDR 256MB 266MHz/333MHz DIMM. 256MB 400MHz is quoting around $37~$40. Obviously, 400MHz still enjoys some premium. On the spot market, original DIMM for tier 1 (Samsung brand) is selling higher than $36 for 333MHz and over $40 for 400MHz. Overall, spot prices are still higher than contract prices to create a uptrend environment.

Price premium between 400MHz and 333MHz/266MHz on the spot market will soon be narrowed by gradually pricing improved in both 333MHz and 266MHz.

:: Leading brand has price premium.

Price difference between daily high and daily low widens day by day, even all the prices listing on our board are original major brands. The price difference is coming from the traders' perspective of product liquidity and brand name value, for example Samsung is a price leader in every perspective; however prices for Hynix brand are lagging behind other tier 1 brands during these days since the concern of tariff issue.

:: Previous models' stocks are waiting to sell too.

Although all DRAM marketers are talking about the great views on the new models, forecasting and restocking demand, we still like to point out there are still lots of previous models on going on the market - for example tier 1 Motherboard companies are still producing over 50% M/B for 845 chipset model. Plenty previous models, chipsets and motherboards, are ready to sell on the channels and warehouse whether there will be lower price promotion project to attract consumers or particular project to clean up inventory. DRAM demand for these can still be expected.