CALROG.COM: DRAM Prices to Increase as Toshiba Leaves Market

DRAM Prices to Increase as Toshiba Leaves Market
By C. Rogers, 01.02

The cutthroat memory market has been a challenging arena for profit-making, as demand for DRAM slipped to a low-point during the past year. Toshiba has decided to call it quits, and sold its memory-manufacturing subsidiary to Micron Technology.

Letting statistics speak for itself, for 128 MB modules running for $9 for PC133 and $21 for PC2100 specifications, it has been hard for both Toshiba and Micron to make money here. Add this to the fact PC technology companies are posted negative income due to the recent recession, this was a necessary decision for Toshiba in order to stay afloat.

What does this mean for the end-user? Memory prices will surge in the coming months. Since Micron has a very large market with little competition, prices will slowly climb the ladder as the economy starts to pick up. This may not be a bad thing in general, as a recovering economy can invest more money into the private sector, creating more job opportunities. However, for bargain-basement customers, right now is the best time to stock up on memory at rock-bottom prices.

There will also be a price premium for upcoming PC2700 memory, also known as DDR333. Pricing may be slightly higher upon release, however should increase performance because of larger memory bandwidth.

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