SDRAM prices up, DDR prices reverse down.

SDRAM spot prices head up.

With the demand from seasonal inventory clean-up of old models' PC - SDRAM prices are heading up. Low price entry level PCs are on sales list this holiday season - with low cost components (so this demand is driving up SDRAM prices). Furthermore, some speculation about the gradually declining supply from DRAM makers in SDRAM production and aftermarket SDRAM sales, the server market and legacy models' demand, should release selling pressure for DRAM makers to sell products well below their costs. However, marketers are still in doubt about how far SDRAM prices can rise in the short-term.

DDR prices trade down

Prices are obviously trending down for DDR chips and modules. On the spot market - 256MB original brand name modules are selling at above $50 and are moving down to OEM modules' prices (which are below $50 right now). Marketers predict the price level will reach $6 and $3 for 256Mb
(266MHz) and 128Mb chips, respectively sooner or later.

Contract prices are expected to be slightly down.

First half contract prices of Dec. are still in negotiation stage, currently quotation contract prices are flat or slightly lower than the second half of Nov price. Overall, quotation prices to DELL and HPQ (in the US) are looking flat, while quotation prices to Japan market customers are already lower than last month due to the local demand decline in December. Marketers are expecting the contract prices will go slightly down as demand begins to wane.