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Memory prices down by 40%

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DQC News Bureau
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RAM prices in the country have been recording a steady fall for the past

three months. Currently, the price of 128 MB SDRAM is fluctuating between Rs

1,000-1,200; while those of 256 MB SDRAM range between Rs 1,600-1,800.

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Interestingly, the prices are stable abroad but they have been on a decline

in India in the JAS quarter. Sources says this trend could be a result of

dealers trying to liquidate the excess stocks of SDRAM.

Sathya Prashad, MD, VanPac Systems informs that 128 MB SDRAMs were priced at

Rs 1,900 three months ago, which is today sold at an average price of Rs 1,000.

"Even 256 MB SDRAM, which was available at Rs 3,000 last quarter is being

sold in the range of Rs 1,600-1,700," says Sanath Babu, MD, Memory Place.

Memory

Module
Price Three Months Ago Prevailing Price Drop (%)
128MB

SDRAM
Rs 1,900 Rs 1,000 40%
256MB

SDRAM
Rs 3,000 Rs 1,600 46%
128MB

DDR RAM
Rs 2,100 Rs 1,800 14%
256MB

DDR RAM
Rs 3,700 Rs 3,200 13.50%
(Source:

DQCI Estimates)
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The price-drops are favored by the technology trends prevailing in the memory

business. The demand pattern has been triggered by the introduction of newer

motherboards, which gives better performance with larger memory modules. Also

the introduction of Windows XP, which requires higher memory (at least 128 MB)

for optimum performance, has stimulated the demand shift. Currently, 128 MB

memory has become the entry-level. The introduction of DDR RAM too is turning

out to be a big reason behind the drop in prices.

Presently, DDR RAMs are sold at the same price as that of SDRAMs three months

ago. A 128 MB DDR RAM costs Rs 1,800 while the 256 MB costs Rs 3,200. "Even

DDR RAM prices have recorded a drop of 10-15 percent over the last few

months," says Kishore Jeswani, Director, Pacific Infotech. Market sources

feel that the growing popularity and price drop in DDR RAM may help it overtake

the demand for SDRAMs.

The price drops had an adverse effect on the market with margins earned by

assemblers going down by Rs 400-700 on assembled PCs. Margins earned by

resellers and local memory distributors have also shrunk by 20 percent during

the past three months.

 SUNILA PAUL

With inputs from GOLDIE in Mumbai

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