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DRAM prices still haven't bottomed out

WHILE PRICES OF double data rate (DDR) memory rose last week it was a "false dawn" and memory prices started to drop again soon after, according to an analyst at market watcher iSuppli. Senior analyst Nam Hyung Kim, in a note to iSuppli clients, said that DDR prices showed some recovery last week, helped by Intel's move to re-assure companies of continued support for DDR 333 memory parts.

But the bottom has not been reached yet, despite hopes, according to the market research firm. March is a very slow period for DRAM makers anyway, and iSuppli says OEM demand for memory remains "extremely sluggish".

Further, fears about an Iraq war have caused both corporations and consumers to defer buying, and the end of March will probably mean that suppliers will rid themselves of existing stock and lower prices. Said the analyst: "Speculation of a pricing bottom is premature"

News source: The Inq

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