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DRAM price set to fall again

Inventory reaches record levels

PC makers have more than two to three months of DRAM inventory on hand as poor PC sales mean that a lot of gear is sitting in a warehouse. 

DRAM inventory at some PC makers has piled up to as much as five to six months, the sources indicated. Normally they only have enough for five to six weeks. Everyone is hoping that the arrival of Windows 8 in late October could boost PC sales but at the moment OEMs are now having a hard time digesting the DRAM stockpiles they built previously.

Some of the backlog has ocme from the bankruptcy of Elpida Memory also encouraged OEMs to step up chip purchases in anticipation that Elpida might suspend partial production at its plant. But with the amount of DRAM at PC OEMs rising quickly, prices of memory chips are likely to fall further later in the third quarter.

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