DRAMexchange reckons that between July 22 and 28, dynamic random access memory (DRAM) spot pricing maintained its stability with minimum fluctuation. On the whole, inventory at the spot market remained high. In spite of the traditional hot season nearing, lack of a crucial demand recovery has caused a price difference of nearly 20% between the spot and contract market.

A low DRAM demand at the spot market is caused by various factors. PC (do-it-yourself) DIY market is exposed to severe pressure as demand has been suppressed by the consistently-growing notebook demand along with larger memory content being installed per box. Subprime mortgage and inflation affect consumers’ trust and cut down consumption power. Consistent expansion at DRAM makers, limits a possible recovery and the continuing price trend.

All major DRAM makers, except Samsung, which has shown a 100% YoY bit growth, have been trying to survive the industry depression. As production continues to advance, a possible price rebound is possible only if vendors reduce production or quit the market, as there seems to be no viable answer to the current saturation.

Quarter-end price reduction seems to have stabilised the current price compared with the increased fall in price in June. Apple's 3G Iphone continues to be the market best seller following its launch in mid July. This encouraged NAND Flash price. In spite of this, NAND Flash demand outlook remains unclear.

NAND Flash contract price may remain flat in the short term may gradually recover after mid-3Q08 with low price promotion on NAND Flash related products. X