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Desktop DRAM prices may decrease from Q4 2013

There is a little bit of good news, at least according to IC Insights which posted their report about two days ago.

The research firm said that the prices for memory kits had a jump of 42% during Q2 2013, in comparison with Q2 2012, but they also forecast that the there will increase to $2.53 in Q3 2013, but will have a start to taper slightly during Q4 2013 with $2.52. That is still 46% increase in comparison with Q4 2012, but that will be the time when the DRAM prices will start to fall down as it shows a decrease in comparison with the previous quarter.

According to the report, it wasn’t surprising to see the increase of DRAM prices because there are fewer manufacturers now than compared to 2010, especially since Japanese based Elpida who declared bankruptcy was acquired by Micron, whereas Taiwan based Powerchip and ProMos exited the business. Now that many manufacturers have left, the supplies for it are fulfilled by a handful of manufacturers.

It was also because of the fact that the production of the chips was stagnant because compared have greatly reduced capital spending. Significant sales of mobile devices also added up to the pressure since manufacturers preferred to make higher-priced low-power mobile DRAM over lower-priced PC DRAM to gain quick profit.

IC Insights didn’t give any logical theory why would the situation improve from Q4 2013, but as of now these are the price trends of the 16GB 1600MHz memory kits, according to Newegg pricing:

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