WASHINGTON -- Spot market prices for mainstream 64-megabit PC100 SDRAMs dropped today to below $11, ending an amazing roller-coaster ride in the past month.
Two weeks ago, 64-Mbit chips were above $21; now they are half that price -- nearly in the range of OEM contract pricing
The sudden spot market price plunge could put pressure now on OEM contracts, which had been gradually rising during the time that commodity prices were skyrocketing, some analysts said.
Avo Kanadjian, senior vice president for DRAM marketing at Samsung Electronics Co., hoped that the memory market was becoming more stable after the wild spot pricing swings in the last month. He believed DRAM prices would continue to be firm as PC demand was unusually strong in the fourth quarter.
Some analysts said spot prices went down as quickly as they went up because panic buying subsided, double ordering stopped, and more supply attracted by the high prices came into the commodity market.