Kingston Technology has reportedly lowered quotes for DRAM modules in response to stagnant demand.

DRAM demand has been negatively affected by continued sluggish PC sales and disappointing sales of tablets and smartphones since the second half of 2013, according to industry sources. DRAM inventory held by PC OEMs as well as module makers has piled up, raising concerns that an inventory correction will take place in the industry.

As a result of weaker-than-expected demand, contract quotes for DRAM started to fall recently with prices for 2Gb and 4Gb DDR3 chips approaching US$1.50 and US$3, respectively, the sources indicated.

SK Hynix earlier in the third quarter already cut its quotes for DRAM chips, the sources observed. Module firm Kingston followed suit by lowering its product prices starting August, the sources said.

In addition to Kingston, several module companies have dropped their quotes slightly to reflect chip price decreases, the sources pointed out. The sources believe that if any of those major DRAM firms initiates a big price cut, a domino effect will be triggered in the market.

DRAM prices enjoyed a rally during the first half of 2013 with upstream suppliers having more negotiation power over the price.

By: DocMemory
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