Memory module maker Kingston anticipates lower DRAM prices
Electronic Buyers' News
(03/14/00, 04:10:39 PM EDT)
FOUNTAIN VALLEY, Calif. ( ChipWire) -- Despite a brief uptick in DRAM prices late last month, module maker Kingston Technology Co. said today that it will cut its tags by an average of 20% in response to a long-term DRAM pricing downturn.
The return of white-box PC makers to the market based on broader availability of Pentium III microprocessors triggered a surge in demand in February that in turn drove up prices of the most popular 64-Mbit chips sold on the gray market, Kingston said. As reported earlier this month, the influx drove the price of a 64-Mbit PC100 SDRAM in an 8x8 configuration from a low of less than $4.50 to as high as $6.30, according to independent distributors.
Though the American IC Exchange in Aliso Viejo, Calif., reported today that 8x8 PC100 parts have fallen back to between $5.15 and about $5.50 on the spot market, Kingston foresees continued price pressure as the industry brings on new capacity and shrinks process line widths and chip die sizes.
In a statement released today, Kingston said, "all of the signs in the market show a good chance for prices to come back down from the increases seen in February. In anticipation of this, we have made the move to make it more affordable to upgrade today's most popular systems."
Kingston's steepest cuts affect Apple Inc.'s Macintosh platforms, with modules for the PowerBook G3 and G4 systems and iMac 233 through 400 series dropping 27% and 25%, respectively, according to the company. Dell Computer Corp. and IBM Corp. customers can expect discounts of about 21% on dual-in-line memory modules (DIMMs) for their desktop systems, while modules for IBM's ThinkPad and Sony Corp.'s Vaio mobile PCs were dropped just under 20%. Compaq Computer Corp. and Hewlett-Packard Co. platforms received module price breaks ranging from 17% to 19%. |
