Memory-chip glut means lower prices

By Tamara Chuang 04/14/2008

An oversupply of computer memory chips means one thing: time to go shopping for computer memory. Prices for computer memory known as DRAM, or dynamic random access memory, have been slipping for more than a year. Now we're seeing some of the lowest prices ever. A 1-gigabyte module of DRAM was $68 at the electronics store last year, said NamHung Kim, an analyst with researcher iSuppli. Now it's $14, he said. "Typically, DRAM prices decline 30 percent annually" because of lower production costs, Kim said. "Last year, prices declined 51 percent. We expect this year to be closer to a 40 percent decline. That's not good for memory makers because that means they're losing money. . . . But this is a good time for the consumer to upgrade."

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