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Spot price for both DDR2 and DDR3 has maintained notionally stable this week (July 19-23). But some traders have started clearing their inventory, prompting us to project that more similar kinds of inventory clearance may emerge next week.
As of noon session of July 23, spot price of 1Gb DDR2 was flat at USD2.15, where DDR3 has dropped by ~1% to USD2.30. Quotation trend among key memory module houses has also maintained stable. Kingston quoted its 2GB DDR3 and DDR2 module at USD41 and USD38, respectively.
Demand for DDR3 has shown some mild uptick. Yet, some traders/distributors were found clearing their DDR3 inventory after being informed by vendors that more DDR3 will be allotted for sales this week. We are more concern about the DDR2 segment as we believe more traders/brokers will start clearing their inventory after realizing a sharper ASP erosion may emerge soon.
Market sentiment at the contract market is also very slow. PC OEMs are being conservative over procurement as they have stockpiled sufficient inventory on hand. Therefore, we see a mild 2% sequential price drop occurred in DDR3 module price in 2HJuly.
A sharper price fall is seen in the DDR2 segment as more PC OEMs either stopped buying DDR2 or shifted using their existing inventory. We think such downtrend will continue into August with a shaper price drop expected.
Amid the downhill price trend, price gap between DDR3 and DDR2 has enlarged to ~USD8. As of 2HJuly, contract price of 2GB DDR2 and DDR3 is averaged at USD35 and USD43, respectively. |