Module price is aggressive

Silent week after Computex

After Computex Taipei, the market is quiet and slow. Marketers are waiting some signals like order receiving status or order forecast status after Computex to predict the price trend. Usually it has to wait one or two weeks to evaluate the order status. So far, marketers didn't hear any exciting news or good effects from Computex.

So market situation for this week begins at very weak demand plus the price slide down. 256Mb price is converging toward twice of 128Mb price. DDR is even weak than SDRAM since there are not much demand on aftermarket. Module price is more aggressive than chip price probably due to selling pressure and not foreseeable coming good signs for uptrend yet.

Current Price level on Module base

Currently, original module price seems more aggressive than chip price on the spot market. Our infomation tells us that there are some original brand modules trading around the market recently which can low the spot price a little bit further.

From the above table, original brand 256MB is just exactly twice of 128MB, but major on third which is still above twice of 128MB. From the difference of major on 3rd between 256MB and 128MB, we can trace some clues on 1. 128Mb chip price is still lower than 1/2 of 256Mb chip price on spot which makes the 128MB is cheaper than 1/2 price of 256MB. 2. More 256MB major on 3rd will likely use 16 chips of 128Mb to configure one 256MB which is cheaper than 8 chips of 256Mb and really make some premium from there.

Right now, OEM brand still has the premium comparing with original or major on 3rd, if there is no premium that will definitely show no room for price to drop down further.